Search found 642 matches

by markcoop
Fri Apr 21, 2017 9:42 pm
Forum: Investing - Help with Personal Investments
Topic: Differential aggressiveness for ROTH vs 401K
Replies: 31
Views: 2326

Re: Differential aggressiveness for ROTH vs 401K

One point I have seen mentioned in the past is looking at the dispersion of possible outcomes. If the risk does not show up long term, then I understand that having stocks in the ROTH makes sense. However, look at the other side. If the risk does show up long term, then stocks in the ROTH is not pre...
by markcoop
Tue Apr 04, 2017 10:18 am
Forum: Investing - Theory, News & General
Topic: Beneficiaries/TOD for Vanguard Joint Account
Replies: 15
Views: 685

Re: Beneficiaries/TOD for Vanguard Joint Account

I may be wrong, but I think Vanguard used to allow you to do it (I have it set up), but at some point changed their policy.
by markcoop
Sat Apr 01, 2017 6:48 pm
Forum: Personal Finance (Not Investing)
Topic: Not opting for 529... anyone else?
Replies: 175
Views: 9920

Re: Not opting for 529... anyone else?

Those two links (at least the posts I looked at) are talking about issues with the IRS. That was some of the logistical issues I was talking about. As far as financial aid is concerned, there is no difference. I have the disbursements made to myself (the owner). Once the IRS sent me a letter about i...
by markcoop
Sat Apr 01, 2017 6:18 pm
Forum: Personal Finance (Not Investing)
Topic: Not opting for 529... anyone else?
Replies: 175
Views: 9920

Re: Not opting for 529... anyone else?

I take back that last point. It can be made to the beneficiary, but still no difference for financial aid.
by markcoop
Sat Apr 01, 2017 6:16 pm
Forum: Personal Finance (Not Investing)
Topic: Not opting for 529... anyone else?
Replies: 175
Views: 9920

Re: Not opting for 529... anyone else?

Chicagoan23, I don't think the 529 money comes off​ the top. I think the potential for harm comes if the money is disbursed to the wrong entity, thereby possibly becoming attributed as student income for a future year, but I'm not super well versed in this. It is also counted as student income if t...
by markcoop
Sat Apr 01, 2017 12:24 pm
Forum: Personal Finance (Not Investing)
Topic: Not opting for 529... anyone else?
Replies: 175
Views: 9920

Re: Not opting for 529... anyone else?

Chicagoan23, I don't think the 529 money comes off​ the top. I think the potential for harm comes if the money is disbursed to the wrong entity, thereby possibly becoming attributed as student income for a future year, but I'm not super well versed in this. It is also counted as student income if t...
by markcoop
Fri Mar 31, 2017 1:26 pm
Forum: Personal Finance (Not Investing)
Topic: Not opting for 529... anyone else?
Replies: 175
Views: 9920

Re: Not opting for 529... anyone else?

How would it hurt? You should be able to get financial aid if you have a bunch of kids in school at the same time, I think. From my understanding, the 529 will come right off the top for the total cost. When colleges look at your total ability to pay, every cent of the 529 is accounted for, and the...
by markcoop
Wed Mar 29, 2017 10:24 am
Forum: Personal Finance (Not Investing)
Topic: Not opting for 529... anyone else?
Replies: 175
Views: 9920

Re: Not opting for 529... anyone else?

Student aid does not simply mean loans- this is especially true at the most expensive private schools. Especially at the top end of school prestige (and where endowments are large), there are often very generous discounts for middle class students from the stated sticker price. My neighbor's kid wa...
by markcoop
Wed Mar 29, 2017 9:57 am
Forum: Personal Finance (Not Investing)
Topic: Not opting for 529... anyone else?
Replies: 175
Views: 9920

Re: Not opting for 529... anyone else?

alfaspider wrote:...the savings should take place in your tax-advantaged retirement space if you aren't maxing it out.


I would only agree with this if you're not getting a state tax deduction on contributions.
by markcoop
Wed Mar 29, 2017 9:05 am
Forum: Personal Finance (Not Investing)
Topic: Not opting for 529... anyone else?
Replies: 175
Views: 9920

Re: Not opting for 529... anyone else?

I think there are a few questions here: 1) Will you fund (at any percentage) your kids education? 2) Do you have the money today to invest for their education? 3) Do you get a state tax deduction? If the answer to all 3 are yes (it was in my case), I think it's a no-brainer to invest in 529s, at lea...
by markcoop
Tue Mar 28, 2017 11:57 am
Forum: Investing - Help with Personal Investments
Topic: Is it time to stop investing in the 529?
Replies: 12
Views: 2079

Re: Is it time to stop investing in the 529?

The only way that $15k-$21k per year estimate makes sense would bt at a school that meets full need. Although it is possible that you daughter will attend such a school, the competition to get into those schools is greater than you may think. Don't know if the GPA you mentioned was weighted or unwei...
by markcoop
Thu Mar 23, 2017 9:06 am
Forum: Investing - Theory, News & General
Topic: Anyone else taking less risk
Replies: 115
Views: 9856

Re: Anyone else taking less risk

I wonder sometimes if market levels (maybe I mean valuations) should impact my AA. I really do believe in not trying to time the market under most situations. However, there are times where I just want to nibble a little bit because the market is high or the market is low. I'm 50 years old. I certai...
by markcoop
Mon Feb 27, 2017 1:15 pm
Forum: Investing - Help with Personal Investments
Topic: 100K gift for kids education...where to put it.
Replies: 35
Views: 2302

Re: 100K gift for kids education...where to put it.

I think sometimes decisions like these come down to assumptions. For me, I made the assumption that I would not qualify for any need-based financial aid. Once I made that assumption, using a UGMA was a simple decision. It wouldn't hurt any aid that I thought I would never get and I knew I would use ...
by markcoop
Tue Jan 31, 2017 1:53 pm
Forum: Investing - Theory, News & General
Topic: Are you changing your AA based on current events?
Replies: 68
Views: 3481

Re: Are you changing your AA based on current events?

I don't like to change my AA, but sometimes I play a bit in my rebalancing bands. My AA is 60% stocks. If we hit all time highs and I feel the market is high, I will drop down a bit...slowly...toward 50%. When the market was tanking in 2008, I did move up above 60%. The combination of all-time marke...
by markcoop
Thu Jan 05, 2017 11:00 am
Forum: Personal Finance (Not Investing)
Topic: Book recommendation for teen
Replies: 15
Views: 838

Re: Book recommendation for teen

However, she has issues with running out of money and then calling home last second. Who needs a book? You are teaching her lessons real time. I assume when she calls you tell her to get a job, or take out a student loan, or agree to a cut back in her cell phone plan. Surely you don't send money? I...
by markcoop
Wed Jan 04, 2017 10:06 am
Forum: Personal Finance (Not Investing)
Topic: Book recommendation for teen
Replies: 15
Views: 838

Re: Book recommendation for teen

Thanks for the replies. My daughter is a sophomore in college. She seems to look for bargains, so she does have some level of understanding that money matters. However, she has issues with running out of money and then calling home last second. I feel some good budgeting skills will really help her....
by markcoop
Tue Jan 03, 2017 10:44 am
Forum: Personal Finance (Not Investing)
Topic: Book recommendation for teen
Replies: 15
Views: 838

Book recommendation for teen

I'm looking for a good book for my daughter about money. I would prefer for it be an be an easy short read. The topics I'm looking for it to contain are budgeting, the value of saving and maybe touch on investing.

Recommendations?

Thanks
by markcoop
Thu Dec 08, 2016 4:40 pm
Forum: Investing - Help with Personal Investments
Topic: Stocks, especially small value stocks, since Nov 4
Replies: 4
Views: 573

Stocks, especially small value stocks, since Nov 4

What is going on with small value stocks? It's up about 18% since the election. The market as a whole is up about 9% over that time. When stocks hit all-time highs and it feels like it's in an overreaction to something, I want to react; although I certainly do understand this is market timing.
by markcoop
Wed Nov 23, 2016 1:14 pm
Forum: Investing - Help with Personal Investments
Topic: Reduce MAGI to capture full child tax credit?
Replies: 21
Views: 2794

Re: Reduce MAGI to capture full child tax credit?

A few years back I came to a similar conclusion. I had switched to a Roth 401K for a year. When I did my taxes the following year, I realized the hit to the child tax credit. I immediately switched back to a trad'l 401K.
by markcoop
Wed Nov 23, 2016 10:53 am
Forum: Investing - Theory, News & General
Topic: Retreat to cash
Replies: 227
Views: 25253

Re: Retreat to cash

Whenever the market reaches new highs, I have an urge to pull back on stocks. If I take any action, it's is usually within my re-balancing bands. I probably rationalize such selling (I do like to buy at all-time lows as well) by convincing myself because it's within my re-balancing bands, then it's ...
by markcoop
Thu Oct 27, 2016 8:50 am
Forum: Personal Finance (Not Investing)
Topic: Low Income - 401k beats Roth?
Replies: 70
Views: 4901

Re: Low Income - 401k beats Roth?

The exercise of running things through software and seeing the outcome is valuable at all stages. I started to contribute to a ROTH 401K in my late 30s with 3 kids. I eventually realized that I was getting a smaller child tax credit and eventually switched back to regular 401K.
by markcoop
Thu Jul 21, 2016 12:48 pm
Forum: Investing - Theory, News & General
Topic: wishing the market would drop to buy more shares
Replies: 36
Views: 3532

Re: wishing the market would drop to buy more shares

1) If the market were to drop, there would be a buying opportunity. However, there's no guarantee the market will rise before you need the money. 2) I view it as a win-win - If the market drops, I will buy more as stocks are on sale. If the market doesn't drop, my current shares are worth more. In e...
by markcoop
Wed Jul 06, 2016 7:39 pm
Forum: Investing - Help with Personal Investments
Topic: What to do if own REITs in taxable with large cap gain
Replies: 8
Views: 804

Re: What to do if own REITs in taxable with large cap gain

Thanks for the responses. His call. Sounds like he may need to money sooner rather than later, so he probably will sell. Guess he got lucky this time.
by markcoop
Wed Jul 06, 2016 10:10 am
Forum: Investing - Help with Personal Investments
Topic: What to do if own REITs in taxable with large cap gain
Replies: 8
Views: 804

What to do if own REITs in taxable with large cap gain

I gave a friend some advice about 10 years ago about diversification. A decision was made to buy some REITs. Somehow, the tax-inefficient part of my advice got lost, and my friend purchased about $15K in Vanguard's REIT fund in a taxable account. It's now worth about $48K. He also bought some more i...
by markcoop
Tue Jun 14, 2016 1:19 pm
Forum: Investing - Theory, News & General
Topic: The Myth of the Recharacterized Roth Conversion after a Loss
Replies: 79
Views: 5665

Re: The Myth of the Recharacterized Roth Conversion after a Loss

Note that we can transfer the tax payment into a money market fund to ensure we have the money to pay the taxes, but if we actually withdraw the money from the tIRA then we can't put our savings back, so we must pay the taxes late in the year. That's a good point. I have never done a conversion or ...
by markcoop
Tue Jun 14, 2016 7:03 am
Forum: Investing - Theory, News & General
Topic: The Myth of the Recharacterized Roth Conversion after a Loss
Replies: 79
Views: 5665

Re: The Myth of the Recharacterized Roth Conversion after a Loss

This reminds me of a problem solving class I took a long time ago. If you have 2 problems, A and B, and you know how to solve A but not B, then if you can show that A and B are equivalent, then you solved B. I believe I've shown that when you take the taxes from the IRA, then the two cases (convert ...
by markcoop
Mon Jun 13, 2016 4:41 pm
Forum: Investing - Theory, News & General
Topic: The Myth of the Recharacterized Roth Conversion after a Loss
Replies: 79
Views: 5665

Re: The Myth of the Recharacterized Roth Conversion after a Loss

Spewin - Then it sounds to me that you are really arguing with FinancialDave's assumption that: it doesn’t really matter whether you pay the taxes for the conversion from an external savings account or from the IRA money that you are converting, as long as you are at least 59.5 years old. Well, we k...
by markcoop
Mon Jun 13, 2016 3:28 pm
Forum: Investing - Theory, News & General
Topic: The Myth of the Recharacterized Roth Conversion after a Loss
Replies: 79
Views: 5665

Re: The Myth of the Recharacterized Roth Conversion after a Loss

it doesn’t really matter whether you pay the taxes for the conversion from an external savings account or from the IRA money that you are converting, as long as you are at least 59.5 years old.Dave If you take the money from the IRA, it is alot easier to understand your point. Case 1 (convert now):...
by markcoop
Wed Jun 08, 2016 2:46 pm
Forum: Investing - Theory, News & General
Topic: 401k(s) are not the best way to save for retirement?
Replies: 57
Views: 7092

Re: 401k(s) are not the best way to save for retirement?

The thing is it depends. Even if it makes sense to contribute to a t401K based on reasons above, there's always something that you may not be considering. There was a conversation a couple of weeks ago about the impact of a t401K on financial aid - https://www.bogleheads.org/forum/viewtopic.php?t=19...
by markcoop
Wed Jun 08, 2016 10:38 am
Forum: Investing - Theory, News & General
Topic: 401k(s) are not the best way to save for retirement?
Replies: 57
Views: 7092

Re: 410k(s) are not the best way to save for retirement?

In my opinion, you should have money in all 3 buckets. And, you could have that if you contribute more to Trad. 401K and put the tax savings into taxable account. Why that is not a good option? KlangFool I don't think we disagree. I have maxed out my t401K and Roth IRAs for many years. But that wor...
by markcoop
Wed Jun 08, 2016 9:54 am
Forum: Investing - Theory, News & General
Topic: 401k(s) are not the best way to save for retirement?
Replies: 57
Views: 7092

Re: 410k(s) are not the best way to save for retirement?

There have been a number of comments on this site talking about why t401K/IRAs are better than ROTH accounts because you can control the taxes. You may even be able to create a situation where you retire early and have years of ROTH conversions with little or no taxes. I've always been skeptical of ...
by markcoop
Sun Jun 05, 2016 7:26 am
Forum: Investing - Help with Personal Investments
Topic: Why bother with a 529?
Replies: 180
Views: 14059

Re: Why bother with a 529?

From one who did use 529s to help fund childrens' education: the 529s were more trouble than they were worth. Didn't save us much at all in taxes, and generated "conversations" with the IRS on two occasions. Can you elaborate about the "conversations"? Is there something you cou...
by markcoop
Fri Jun 03, 2016 9:52 am
Forum: Personal Finance (Not Investing)
Topic: Proper Protocol to Handle Fender Bender
Replies: 41
Views: 4116

Re: Proper Protocol to Handle Fender Bender

When people say to call the police, are they saying to dial 911? If yes, even for accidents with minor damage and no one is hurt?
by markcoop
Wed Jun 01, 2016 12:58 pm
Forum: Investing - Help with Personal Investments
Topic: 529 set up by uncle or grandparent & fin aid
Replies: 43
Views: 2670

Re: 529 set up by uncle or grandparent & fin aid

KlangFool - 529s have successor owners. And, you can always change the beneficiary. Maybe it's just me, but I don't find 529s difficult to open or use. Livesoft - I probably agree with you for the parent. For a grandparent, I don't see how those other options are applicable. I assume the grandparent...
by markcoop
Wed Jun 01, 2016 12:23 pm
Forum: Investing - Help with Personal Investments
Topic: 529 set up by uncle or grandparent & fin aid
Replies: 43
Views: 2670

Re: 529 set up by uncle or grandparent & fin aid

A couple of other benefits: 1) Potential state tax deduction on contributions 2) If something happens to the grandparent, the money is going where it was intended. markcoop, 1) The benefits is too small to matter in most cases. 2) Can be solved by TRUST and WILL. What if the kids do not go to colle...
by markcoop
Wed Jun 01, 2016 11:34 am
Forum: Investing - Help with Personal Investments
Topic: 529 set up by uncle or grandparent & fin aid
Replies: 43
Views: 2670

Re: 529 set up by uncle or grandparent & fin aid

A couple of other benefits:
1) Potential state tax deduction on contributions
2) If something happens to the grandparent, the money is going where it was intended.
by markcoop
Wed Jun 01, 2016 10:45 am
Forum: Investing - Help with Personal Investments
Topic: 529 set up by uncle or grandparent & fin aid
Replies: 43
Views: 2670

Re: 529 set up by uncle or grandparent & fin aid

I did a bit more research. The following profile question asks about such assets: SQ521. What is the total value of assets held in Section 529 college savings plans that were established for the student by someone other than the student's parent(s) I found 11 schools that ask this supplemental quest...
by markcoop
Tue May 31, 2016 9:54 pm
Forum: Investing - Help with Personal Investments
Topic: 529 set up by uncle or grandparent & fin aid
Replies: 43
Views: 2670

Re: 529 set up by uncle or grandparent & fin aid

As I pointed out earlier. Unlike FAFSA, each school is free to treat 529 plans as they see fit from the CSS PROFILE. When you complete a PROFILE it is specific to each school. Some schools do not even ask for the information. Some schools automatically use it in their formulas. Finally, some school...
by markcoop
Tue May 31, 2016 2:55 pm
Forum: Investing - Help with Personal Investments
Topic: 529 set up by uncle or grandparent & fin aid
Replies: 43
Views: 2670

Re: 529 set up by uncle or grandparent & fin aid

A simple Google search would have found this information from a multitude of sources. Here is the relevant info from FinAid Section 529 College Savings Plan Loophole The CSS/Financial Aid PROFILE form asks the family to list all 529 college savings plans that name the student as a beneficiary, rega...
by markcoop
Tue May 31, 2016 1:41 pm
Forum: Investing - Help with Personal Investments
Topic: 529 set up by uncle or grandparent & fin aid
Replies: 43
Views: 2670

Re: 529 set up by uncle or grandparent & fin aid

The CSS PROFILE requires the listing of all 529 plans with the student as beneficiary regardless of the owner or the student's dependent status. I don't think this is true. How would you even know if Grandma opened an account for your child? If you have a specific source that says this, I'd be inte...
by markcoop
Tue May 31, 2016 1:05 pm
Forum: Investing - Help with Personal Investments
Topic: 529 set up by uncle or grandparent & fin aid
Replies: 43
Views: 2670

Re: 529 set up by uncle or grandparent & fin aid

A couple of points: 1) The CSS Profile and FAFSA both switched to prior prior, so any 529 disbursements after Jan 1 of Sophomore year will not affect aid for that student at any school that uses either form. Note: This change does not start applying until the 2017/2018 school year. This is true and...
by markcoop
Tue May 31, 2016 9:51 am
Forum: Investing - Help with Personal Investments
Topic: 529 set up by uncle or grandparent & fin aid
Replies: 43
Views: 2670

Re: 529 set up by uncle or grandparent & fin aid

A couple of points: 1) The CSS Profile and FAFSA both switched to prior prior, so any 529 disbursements after Jan 1 of Sophomore year will not affect aid for that student at any school that uses either form. 2) Not sure I understand what Spirit Rider is saying when he says "Third party 529s of ...
by markcoop
Thu Mar 10, 2016 10:34 am
Forum: Investing - Theory, News & General
Topic: Maxing Roth 401K vs Trad 401K
Replies: 47
Views: 4967

Re: Maxing Roth 401K vs Trad 401K

All things being equal (same rate, same fees, etc), the ROTH 401K should only be better. However, there are too many variables to always conclude that. The ability the control your AGI in retirement is very important. That may lead one to do some of both (Roth and non-Roth), or at least target a cer...
by markcoop
Fri Mar 04, 2016 3:39 pm
Forum: Investing - Theory, News & General
Topic: "Why IBM Moved to Indexing"
Replies: 22
Views: 4425

Re: "Why IBM Moved to Indexing"

I haven't moved my IBM 401K money to Vanguard yet but I probably will. I did not take advantage of the post-tax 401K because I didn't understand (and probably still don't) the benefit. 1) Why move your IBM 401K money to Vanguard? The 401K has Vanguard funds. The fees a lower in the 401K. You also h...
by markcoop
Fri Feb 19, 2016 1:54 pm
Forum: Personal Finance (Not Investing)
Topic: Playing Financial Defense- HELOC?
Replies: 11
Views: 1164

Re: Playing Financial Defense- HELOC?

I have had a $100K HELOC open for the past decade. I feel it's not a replacement for a good emergency fund, but it is an awesome feeling knowing I have an extra $100K at my disposable if I ever needed it. Originally, I viewed it only as emergency type money, but it's purpose has grown over the years...
by markcoop
Tue Feb 16, 2016 2:23 pm
Forum: Personal Finance (Not Investing)
Topic: 1099B not coming till end of Feb but need info now
Replies: 22
Views: 1938

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

So I finally got my 1099Bs and 1099DIV from VBS. I did end up filing my return and my child's return last week using values I figured out. The 1099DIV was correct to the penny. The 1099B was also correct in total, except VBS divided the long-term gains into two 1099Bs - Covered and non-covered share...
by markcoop
Fri Feb 12, 2016 1:48 pm
Forum: Personal Finance (Not Investing)
Topic: 1099 DIV from VBS too late
Replies: 16
Views: 1052

Re: 1099 DIV from VBS too late

livesoft wrote:
markcoop wrote:I did see the credit being applied. Just found that $300 is the threshold to file form 1116.

For a single person like your student.


Right again. $600 for me as married filing jointly.
by markcoop
Fri Feb 12, 2016 1:42 pm
Forum: Personal Finance (Not Investing)
Topic: 1099 DIV from VBS too late
Replies: 16
Views: 1052

Re: 1099 DIV from VBS too late

The amount is so low that you do not need to fill out Form 1116, but TT will give you the credit. Do you ever look at the forms that TT produces? If not, why not? Specifically, it will be on page 2 of Form 1040. I did see the credit being applied. Just found that $300 is the threshold to file form ...
by markcoop
Fri Feb 12, 2016 1:27 pm
Forum: Personal Finance (Not Investing)
Topic: 1099 DIV from VBS too late
Replies: 16
Views: 1052

Re: 1099 DIV from VBS too late

Note that if Foreign Tax is $2.83, then Foreign income is supposed to be $2.83 x 20.44601= $57.86 Box 1b of your 1099-DIV will be $2.83 x x 16.62346 = $47.04. 47.04 / 57.87 = 81.3%, but Vanguard previously estimated QDI to be 78%. I assume foreign income would be used if I filled out form 1116. I d...
by markcoop
Fri Feb 12, 2016 1:25 pm
Forum: Personal Finance (Not Investing)
Topic: 1099 DIV from VBS too late
Replies: 16
Views: 1052

Re: 1099 DIV from VBS too late

They can't truly be serious about the 15 Feb deadline, as there are inputs to the 1040 that aren't due until March 15 (e.g., Form 1120). Schools have different deadlines. I called one school that had a Feb 15 deadline and they said the deadline is to guarantee you receive your aid notification with...

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