Search found 119 matches

by sdvan
Fri Apr 20, 2018 3:14 pm
Forum: Investing - Help with Personal Investments
Topic: Solo 401K Excess Employer Profit Sharing Contribution--Ugh
Replies: 14
Views: 819

Re: Solo 401K Excess Employer Profit Sharing Contribution--Ugh

The check did not arrive at my office until January 3, 2018. I presume that it was mailed on Dec. 28, 2017. However, it was in transit and not available to me until it was delivered to me on January 3, 2018. With the change in tax rates between 2017 and 2018, I would pay about $1000 if I say that I ...
by sdvan
Fri Apr 20, 2018 1:25 pm
Forum: Investing - Help with Personal Investments
Topic: Solo 401K Excess Employer Profit Sharing Contribution--Ugh
Replies: 14
Views: 819

Re: Solo 401K Excess Employer Profit Sharing Contribution--Ugh

Thanks Spirit Rider. So, I think I am down to two options. 1. Treat the $30K as paid in 2017. I double checked and the check was dated Dec. 28, 2017. However, I didn't receive it until January 3rd. In the past, when the rates were the same for both years, my accountant has encouraged me to just trea...
by sdvan
Fri Apr 20, 2018 12:15 am
Forum: Investing - Help with Personal Investments
Topic: Solo 401K Excess Employer Profit Sharing Contribution--Ugh
Replies: 14
Views: 819

Re: Solo 401K Excess Employer Profit Sharing Contribution--Ugh

Sorry if this is a red herring. I did maximize my employee contributions first. Then, I put in the employer profit sharing. I am over $830 regardless. Would it help me if it were an excess employee contribution? I had net earnings of $186K. I contributed $24K (including catch up) as employee 401K co...
by sdvan
Thu Apr 19, 2018 10:15 pm
Forum: Investing - Help with Personal Investments
Topic: Solo 401K Excess Employer Profit Sharing Contribution--Ugh
Replies: 14
Views: 819

Re: Solo 401K Excess Employer Profit Sharing Contribution--Ugh

Thanks Spirit Rider! One follow up question: Could I recharacterize my “employer” contribution as an “employee” contribution? I submit all of the money I give to Fidelity on the same form (401K contributions and profit sharing). I do have to list what amounts go to what category. So, I think it coul...
by sdvan
Thu Apr 19, 2018 6:04 pm
Forum: Investing - Help with Personal Investments
Topic: Solo 401K Excess Employer Profit Sharing Contribution--Ugh
Replies: 14
Views: 819

Re: Solo 401K Excess Employer Profit Sharing Contribution--Ugh

In a quick look at the tax brackets for 2017/2018, it might only cost me about $150 in extra taxes if I could count $5K of my income as 2017 income. In the past, my accountant has suggested that we count income in the earlier year when it didn't make any tax rate difference. So, follow up question: ...
by sdvan
Thu Apr 19, 2018 5:15 pm
Forum: Investing - Help with Personal Investments
Topic: Solo 401K Excess Employer Profit Sharing Contribution--Ugh
Replies: 14
Views: 819

Solo 401K Excess Employer Profit Sharing Contribution--Ugh

It appears that I (as employer) over contributed profit sharing dollars to my solo 401K by $830.32 for 2017. I had two clients that sent checks on Dec. 31, 2017 that I didn't receive until 2018. That missing income left me just shy of the net earnings to cover my last 2017 profit sharing check of $3...
by sdvan
Sat Nov 04, 2017 8:36 pm
Forum: Investing - Help with Personal Investments
Topic: Bond Options
Replies: 9
Views: 1366

Re: Bond Options

I've been looking into one additional option. I can buy CD's in my Fidelity IRA from a huge number of banks. Why not buy a 5 year CD with a 2.4% rate as opposed to a Fidelity Bond fund with a duration longer than 5 years and a return over the last 5 years of less than 2%? With FDIC insurance, there ...
by sdvan
Wed Nov 01, 2017 7:59 pm
Forum: Investing - Help with Personal Investments
Topic: Bond Options
Replies: 9
Views: 1366

Re: Bond Options

Thanks for the responses. In thinking about this I am really asking two questions (and debating them with myself): 1. I have over 20% of my portfolio in stocks in non-Roth IRA's and 401K's. I know traditional logic is to put bond funds in the tax deferred accounts to lower future RMD's. I have indiv...
by sdvan
Mon Oct 23, 2017 7:20 pm
Forum: Investing - Help with Personal Investments
Topic: Bond Options
Replies: 9
Views: 1366

Bond Options

I have decided to buy bond mutual funds with the proceeds from individual California muni-bonds that are redeemed early. But, I'm struggling with deciding the right fund. Up to this point, I've put the money into Vanguard's Cal Tax exempt fund (VCADX) and I've been very happy with that fund. It does...
by sdvan
Fri Feb 10, 2017 3:52 pm
Forum: Investing - Theory, News & General
Topic: The Final, Definitive Thread on Brokerage Transfer Bonuses
Replies: 931
Views: 160892

Re: The Final, Definitive Thread on Brokerage Transfer Bonuses

As new accounts can be opened with the offer code automatically applied, I would suggest that you and your spouse both just open individual accounts and see what happens. I think that I will try this. For $100K Schwab gives $500. Most competitors are $200K for $600. So, only $100 lost and no need t...
by sdvan
Thu Feb 09, 2017 5:11 pm
Forum: Investing - Theory, News & General
Topic: The Final, Definitive Thread on Brokerage Transfer Bonuses
Replies: 931
Views: 160892

Re: The Final, Definitive Thread on Brokerage Transfer Bonuses

I am annoyed with Schwab. I planned to open 2 accounts (1 for me, 1 for spouse) and put $100K in each for the $500 bonus X 2. However, the 1-800 person told me it is 1 bonus per household and referred me to the local branch which just called me back and also said that it is 1 per household. However,...
by sdvan
Sun Feb 05, 2017 11:46 pm
Forum: Investing - Help with Personal Investments
Topic: Bond Premium Amortization
Replies: 17
Views: 1665

Re: Bond Premium Amortization

I still have one more question. I am trying to move the bonds from Zions to other brokerages. Therefore, I am trying to record the basis of the bonds in Quicken just in case the basis doesn't transfer electronically. Unfortunately, when I set up the Zions account the cost basis didn't come over ele...
by sdvan
Fri Feb 03, 2017 9:02 pm
Forum: Investing - Help with Personal Investments
Topic: Bond Premium Amortization
Replies: 17
Views: 1665

Re: Bond Premium Amortization

Actually, amortization matters a great deal if it's an out-of-state bond. So to the OP, were all of your individual bonds in-state? Or did you have out-of-state bonds as well? Also, you need to amortize the premium even on in-state bonds if you're paying for Medicare and are paying surcharge premiu...
by sdvan
Fri Feb 03, 2017 6:18 pm
Forum: Investing - Help with Personal Investments
Topic: Bond Premium Amortization
Replies: 17
Views: 1665

Re: Bond Premium Amortization

So, I think that I just learned a fairly big downside to buying individual municipal bonds at a premium. If I understand correctly, that premium is amortized so that there is no capital loss when the bond matures. However, the annual deduction for the amortized premium is deducted from tax exempt in...
by sdvan
Fri Feb 03, 2017 5:41 pm
Forum: Investing - Help with Personal Investments
Topic: Bond Premium Amortization
Replies: 17
Views: 1665

Re: Bond Premium Amortization

I just checked my 1099's and tax return from last year. It appears that the amortized bond purchase premium is reported on the 1099 and that the amortized amount of the premium is deducted from the interest earned. However, given that these are tax exempt muni bonds, doesn't that process effectively...
by sdvan
Fri Feb 03, 2017 5:00 pm
Forum: Investing - Help with Personal Investments
Topic: Bond Premium Amortization
Replies: 17
Views: 1665

Re: Bond Premium Amortization

The gain or loss is based on the purchase price adjusted by the amortization. If held until maturity, then the adjusted cost will be equal to the maturity value and there will be no capital gain or loss. If disposed of before maturity, then the adjusted cost will be the purchase price adjusted by th...
by sdvan
Fri Feb 03, 2017 4:57 pm
Forum: Investing - Help with Personal Investments
Topic: Bond Premium Amortization
Replies: 17
Views: 1665

Re: Bond Premium Amortization

The bonds have been purchased over the last 5 years or so. They are currently held at Zions Direct.
by sdvan
Fri Feb 03, 2017 3:54 pm
Forum: Investing - Help with Personal Investments
Topic: Bond Premium Amortization
Replies: 17
Views: 1665

Bond Premium Amortization

I purchased a number of municipal bonds a few years ago. I purchased some of the bonds at a premium given the prevailing interest rates. Sad to say, I never paid much attention to the basis in the bonds. I assumed that when I sold the bonds or they matured or were called early, that I would just eit...
by sdvan
Mon Jan 23, 2017 9:04 pm
Forum: Investing - Theory, News & General
Topic: The Final, Definitive Thread on Brokerage Transfer Bonuses
Replies: 931
Views: 160892

Re: The Final, Definitive Thread on Brokerage Transfer Bonuses

I have over $900K in individual municipal bonds at Zions Direct. They are changing their systems in a way that I don't like. So, I am motivated to move all of my bonds elsewhere. I was going to add some cash and move $1 million to Fidelity for the $2500 bonus. But, the airline mileage option was so ...
by sdvan
Thu Sep 01, 2016 4:47 pm
Forum: Personal Finance (Not Investing)
Topic: Parent Obamacare Tax Penalty For College Student
Replies: 31
Views: 3122

Re: Parent Obamacare Tax Penalty For College Student

Big Saver, I don't think you can skirt the penalty just by not receiving a refund. Wouldn't the IRS just track it for the next year? As I read the rules, there is an IRS document that says that parents must pay for their dependent children or pay the penalty. My daughter absolutely qualifies for an ...
by sdvan
Thu Sep 01, 2016 2:50 pm
Forum: Personal Finance (Not Investing)
Topic: Parent Obamacare Tax Penalty For College Student
Replies: 31
Views: 3122

Re: Parent Obamacare Tax Penalty For College Student

dode's post about lack of IRS support for my argument has me leaning toward signing up my daughter for her own Obamacare policy. But, I have to vent a little (sorry). Prior to Obamacare, I had a great high deductible policy that covered my entire family. It worked in good years and bad. Unfortunatel...
by sdvan
Wed Aug 31, 2016 6:23 pm
Forum: Personal Finance (Not Investing)
Topic: Parent Obamacare Tax Penalty For College Student
Replies: 31
Views: 3122

Re: Parent Obamacare Tax Penalty For College Student

Thanks all. As stated, daughter is at a college with a plan that is no longer Obamacare compliant. I am self-employed with individual plans for each family member-so not help there. College plan is light years better than Obamacare alternative and would cover minor things and major things as well. V...
by sdvan
Wed Aug 31, 2016 4:34 pm
Forum: Personal Finance (Not Investing)
Topic: Parent Obamacare Tax Penalty For College Student
Replies: 31
Views: 3122

Re: Parent Obamacare Tax Penalty For College Student

Self Employed with individual policies for each family member. I am trying to understand my options. The IRS test for a "dependent" (from the link provided and other places) includes: 3.The child must have lived with you for more than half of the year. (footnote says: "There are exceptions for tempo...
by sdvan
Wed Aug 31, 2016 3:26 pm
Forum: Personal Finance (Not Investing)
Topic: Parent Obamacare Tax Penalty For College Student
Replies: 31
Views: 3122

Parent Obamacare Tax Penalty For College Student

Esteemed Bogleheads, I solicit any ideas or insights for the following scenario: Daughter attends college full-time. She obtains health insurance through her school. Half way through 2015, school decides that its insurance will no longer be considered "minimum essential coverage" under Obamacare. De...
by sdvan
Tue Oct 28, 2014 12:44 pm
Forum: Investing - Help with Personal Investments
Topic: Quicken Transaction History
Replies: 8
Views: 1529

Re: Quicken Transaction History

I want to thank the bogelheads for helping me solve this problem. I should have asked here first. What I ended up doing (for the benefit of anyone searching this issue in the future) was to simply transfer the shares from my old joint account into my new Trust account. I clicked the box that said to...
by sdvan
Fri Oct 24, 2014 3:42 pm
Forum: Investing - Help with Personal Investments
Topic: Quicken Transaction History
Replies: 8
Views: 1529

Re: Quicken Transaction History

You didn't specify what version on Quicken you are using. I did some experiments in Quicken 2013 Deluxe. If you downloaded data from Vanguard, it may be useful or not. I don't use Vanguard anymore as I prefer Fidelity's service. After keeping careful note of the contents for the downloaded transact...
by sdvan
Fri Oct 24, 2014 3:40 pm
Forum: Investing - Help with Personal Investments
Topic: Quicken Transaction History
Replies: 8
Views: 1529

Re: Quicken Transaction History

Sure. After the assets are transferred to the new account, do one final sync with Vanguard. Then, unlink the current account from Vanguard. Then link it to the new trust account and sync. Then, manually delete the transfer of asset (I.e., delete and add) transactions. Quicken will retain the histor...
by sdvan
Fri Oct 24, 2014 2:15 pm
Forum: Investing - Help with Personal Investments
Topic: Quicken Transaction History
Replies: 8
Views: 1529

Quicken Transaction History

I've searched and posted questions on the Quicken blog sites without getting anywhere. So, I'm turning to the wisdom of the bogleheads. I recently created a Trust. Vanguard required me to create a new account for the Trust and then move all of my holdings into the new account. (Frustrating, as Fidel...
by sdvan
Fri Jan 31, 2014 2:24 pm
Forum: Investing - Help with Personal Investments
Topic: Boglehead Fixed Income Approach?
Replies: 7
Views: 1503

Re: Boglehead Fixed Income Approach?

Thanks for all of your thoughts. I decided to go with the 1/5 to Penfed and keep 4/5 in individual munis. I realize that this isn't much of a change . . . My thinking on the individual munis is that they represent something akin to a pension or annuity for me (I have neither). Yes, I currently pay a...
by sdvan
Thu Jan 30, 2014 5:12 pm
Forum: Investing - Help with Personal Investments
Topic: Boglehead Fixed Income Approach?
Replies: 7
Views: 1503

Re: Boglehead Fixed Income Approach?

If unsure, how about half in the PenFed CD and half in a muni bond fund, either the CA intermediate or if you want to diversify away some of the state-specific risk, the national TE fund? Kevin Thanks for the suggestion. It certainly makes sense. I am currently thinking (at least for the next 24 ho...
by sdvan
Thu Jan 30, 2014 4:36 pm
Forum: Investing - Help with Personal Investments
Topic: Boglehead Fixed Income Approach?
Replies: 7
Views: 1503

Re: Boglehead Fixed Income Approach?

My apologies. I thought that it made sense to start a new post because of the more detailed information. I'm happy if they are combined.

Thank you for the link to the other bond post.
by sdvan
Thu Jan 30, 2014 3:11 pm
Forum: Investing - Help with Personal Investments
Topic: Boglehead Fixed Income Approach?
Replies: 7
Views: 1503

Boglehead Fixed Income Approach?

What is the boglehead approach to fixed income with regard to maturity and risk? I understand stock indexing and low costs. But, I'm struggling with how that relates to fixed income. The most obvious answer is to use bond index funds with low costs. However, at current rates and with the expectation...
by sdvan
Wed Jan 29, 2014 7:10 pm
Forum: Investing - Help with Personal Investments
Topic: Bond Fund, Individual Bonds, or CD's
Replies: 2
Views: 494

Bond Fund, Individual Bonds, or CD's

Like many, I am considering the best place to put some of the fixed income portion of my portfolio. For context, my fixed income includes a mixture of 2 bond funds (TBM in IRA, and CA intermediate tax free in taxable), CD's some maturing next month, Ibonds, EE bonds, individual CA GO bonds, and savi...
by sdvan
Thu Dec 05, 2013 4:10 pm
Forum: Investing - Theory, News & General
Topic: Penfed CD Transfer Questions
Replies: 1
Views: 440

Penfed CD Transfer Questions

The Penfed 5 year CD (certificate) rate of 3% is pushing me to swap my Vanguard Total Bond Fund in my IRA to my Penfed IRA. Any help with these questions would be much appreciated: 1. This seems like a no brainer to swap total bond market with lower than 3% return rates (SEC or distribution) for an ...
by sdvan
Tue Oct 01, 2013 2:55 pm
Forum: Investing - Theory, News & General
Topic: 50-50 Stocks/Fixed Income Withdrawal Rates
Replies: 7
Views: 1299

Re: 50-50 Stocks/Fixed Income Withdrawal Rates

The reason I feel somewhat confident with my 3% fixed withdrawal plan is that my budget (based on 5+ years of actual spending preretirement) requires only 2.125%. As a result, if the market crashes, I still have a huge cushion. If the market tanked by 50%, my 3% withdrawal in dollars would still be ...
by sdvan
Mon Sep 30, 2013 4:41 pm
Forum: Investing - Theory, News & General
Topic: 50-50 Stocks/Fixed Income Withdrawal Rates
Replies: 7
Views: 1299

50-50 Stocks/Fixed Income Withdrawal Rates

We are planning a 3% withdrawal rate over 50 years. Here are my assumptions (all figures present dollars before tax): 50%: Fixed income earns 3.5% (fixed income is in long-term munis at 5%, I and EE bonds at approximately 3.5%, taxable muni bond fund at 3.5%, total bonds in IRA at 2.5%, and "cash" a...
by sdvan
Fri Jun 21, 2013 4:35 pm
Forum: Investing - Help with Personal Investments
Topic: Bond Fund Duration, NAV & Return After Interest Rate Increas
Replies: 25
Views: 2408

Re: Bond Fund Duration, NAV & Return After Interest Rate Inc

During periods of low interest rates, it's common for bond funds to hold a lot of premium bonds, which also pushes distribution yields higher than SEC yields. The price of these high-coupon bonds declines as they approach maturity, reducing the SEC yield. When interest rates are rising, which many ...
by sdvan
Fri Jun 21, 2013 4:32 pm
Forum: Investing - Help with Personal Investments
Topic: Bond Fund Duration, NAV & Return After Interest Rate Increas
Replies: 25
Views: 2408

Re: Bond Fund Duration, NAV & Return After Interest Rate Inc

I don't follow. The fund is buying and selling bonds continually in order to maintain a specific duration/maturity. The difference between a 6 year bond and a 5 year bond wouldn't explain the difference between the SEC yield and the distribution yield. I agree that the fund may change from bonds bo...
by sdvan
Fri Jun 21, 2013 3:42 pm
Forum: Investing - Help with Personal Investments
Topic: Bond Fund Duration, NAV & Return After Interest Rate Increas
Replies: 25
Views: 2408

Re: Bond Fund Duration, NAV & Return After Interest Rate Inc

sdvan: what's happening is that the funds own older bonds with high coupon rates that are still valued at a premium vs. face value. As they approach maturity, these bonds decline in value towards par. So in effect, their cash-flow (high coupon, low par) is more front-heavy than recent bonds. When t...
by sdvan
Fri Jun 21, 2013 3:36 pm
Forum: Investing - Help with Personal Investments
Topic: Bond Fund Duration, NAV & Return After Interest Rate Increas
Replies: 25
Views: 2408

Re: Bond Fund Duration, NAV & Return After Interest Rate Inc

Ultimately, I care about how much money I receive from the fund (distribution yield), not what the fund would earn if the bonds were held to maturity (SEC yield). Interesting. I care about total return, which includes change in NAV as well as distributions. SEC Yield (a type of YTM) incorporates pr...
by sdvan
Fri Jun 21, 2013 1:30 pm
Forum: Investing - Help with Personal Investments
Topic: Bond Fund Duration, NAV & Return After Interest Rate Increas
Replies: 25
Views: 2408

Re: Bond Fund Duration, NAV & Return After Interest Rate Inc

I'm returning to the expected return for TBM (distribution yield versus SEC yield). The distribution yield was 2.34% on June 1. It's been running 2.34% to 2.45% since the beginning of the year. The SEC yield has been increasing from 1.56% to 1.79% today. As I think about the "yield" for TBM going fo...
by sdvan
Wed Jun 05, 2013 6:25 pm
Forum: Investing - Help with Personal Investments
Topic: Bond Fund Duration, NAV & Return After Interest Rate Increas
Replies: 25
Views: 2408

Re: Bond Fund Duration, NAV & Return After Interest Rate Inc

I'm still frozen on this issue. I decided to wait and see the distribution yield for TBM on June 1. Distribution yield dropped from 2.36% to 2.34%. SEC yield rose from 1.56% to 1.63%. Not much insight from those numbers for me. Alternatives to TBM: 1. Vanguard Brokered CDs: The easiest option would ...
by sdvan
Wed May 22, 2013 1:37 pm
Forum: Investing - Help with Personal Investments
Topic: Bond Fund Duration, NAV & Return After Interest Rate Increas
Replies: 25
Views: 2408

Re: Bond Fund Duration, NAV & Return After Interest Rate Inc

The SEC yield is the yield you will get on the bond fund going forward. The other yield you see is past performance. This can be confusing. The SEC yield is considerably lower right now than the historical yield. Keep in mind that if the SEC yield of a bond fund were to rise your NAV would simultan...
by sdvan
Wed May 22, 2013 12:30 am
Forum: Investing - Help with Personal Investments
Topic: Bond Fund Duration, NAV & Return After Interest Rate Increas
Replies: 25
Views: 2408

Re: Bond Fund Duration, NAV & Return After Interest Rate Inc

As I get ready to purchase CDs, I realize that the total bond fund distributions are higher than the 2% that I can get for a cd right now. I am conflicted between staying the course until the distributions drop below the cd rate and the concern that the cd won't be available at the same rate when I ...
by sdvan
Fri May 17, 2013 6:10 pm
Forum: Investing - Help with Personal Investments
Topic: Bond Fund Duration, NAV & Return After Interest Rate Increas
Replies: 25
Views: 2408

Bond Fund Duration, NAV & Return After Interest Rate Increas

I understand the math that says that holding a bond fund for the duration of the fund after an interest rate increase will result in a return of the temporarily lost NAV plus a total return at the rate of return in effect prior to the interest rate increase. My question is which rate of return to ex...
by sdvan
Tue May 14, 2013 1:57 pm
Forum: Investing - Help with Personal Investments
Topic: Selling Bond Funds?
Replies: 16
Views: 2248

Re: Selling Bond Funds?

Yes, in theory, I could hold for 5 years after each interest rate increase and I'd earn the interest rate prevailing at the time of the interest rate increase. But, at what cost? If instead, I purchase individual bonds and hold them to maturity, I never suffer any NAV loss regardless of what intere...
by sdvan
Tue May 14, 2013 1:14 pm
Forum: Investing - Help with Personal Investments
Topic: Selling Bond Funds?
Replies: 16
Views: 2248

Re: Selling Bond Funds?

The reason to consider individual bonds is the guarantee that they will not lose NAV if held to maturity. In theory the fund also could function similarly if held for the duration after an interest rate increase. But, the NAV hit from multiple interest rate increases and the tiny returns have me con...
by sdvan
Tue May 14, 2013 12:21 pm
Forum: Investing - Help with Personal Investments
Topic: Selling Bond Funds?
Replies: 16
Views: 2248

Re: Selling Bond Funds?

Thanks for some interesting thoughts. But, I think some are not clear on my question. I am suggesting moving out of two bond funds (total bond and Cal. intermediate tax free) and moving the money into individual California general obligation tax exempt bonds. I hear LH saying that treasuries and TIP...
by sdvan
Mon May 13, 2013 5:47 pm
Forum: Investing - Help with Personal Investments
Topic: Selling Bond Funds?
Replies: 16
Views: 2248

Re: Selling Bond Funds?

I hold bond funds to offset equity risk too. The problem I'm having with bond funds is that they are becoming more risky and simultaneously going down in total return. As a result, I'm looking for alternatives that don't have the risk of a significant principle loss while at the same to meeting or b...
by sdvan
Mon May 13, 2013 1:22 pm
Forum: Investing - Help with Personal Investments
Topic: Selling Bond Funds?
Replies: 16
Views: 2248

Selling Bond Funds?

Sorry for another bond funds post. But, I'm starting to rethink my bond fund exposure. I'm in the Van total bond index fund in my IRA and the Cal. intermediate tax exempt bond fund in my taxable account. I hate the thought of significant NAV losses in these funds. These funds are supposed to be the ...