Search found 10914 matches

by DSInvestor
Mon Jan 21, 2019 2:46 pm
Forum: Personal Finance (Not Investing)
Topic: Roth Conversion and Capital Gains
Replies: 5
Views: 436

Re: Roth Conversion and Capital Gains

Perhaps you can tweak your taxable holdings to reduce/eliminate the amount of non-qualified dividend income and interest in the taxable account. Hold your taxable bonds in the traditional IRA space instead of taxable. If you can shift this 20-30K of interest/non-QDI income to be received in your IRA...
by DSInvestor
Mon Jan 21, 2019 1:21 pm
Forum: Personal Consumer Issues
Topic: Is it ever worth purchasing an extended warranty for a vehicle?
Replies: 38
Views: 1014

Re: Is it ever worth purchasing an extended warranty for a vehicle?

You have told us that you drive 25K miles/year. How many miles on your car now? You may get different suggestions if it has 95K miles or 30K miles.
by DSInvestor
Sun Jan 20, 2019 9:14 pm
Forum: Investing - Help with Personal Investments
Topic: Roth Contribution Trouble?
Replies: 3
Views: 379

Re: Roth Contribution Trouble?

Your high income made you ineligible for Roth IRA contributions. Here is a link to a fairmark.com page on Excess Contributions to Roth IRA: https://fairmark.com/retirement/roth-accounts/contributions-to-roth-accounts/excess-contributions-to-roth-iras/ Take a look at recharacterizing your 2018 Roth I...
by DSInvestor
Sun Jan 20, 2019 8:15 pm
Forum: Personal Consumer Issues
Topic: Where to buy CR2032 batteries?
Replies: 38
Views: 2204

Re: Where to buy CR2032 batteries?

I bought some from Ikea a while back and they work great. Here's a link to item at ikea.com that sells for $2.99 per 8 pack:
https://www.ikea.com/us/en/catalog/prod ... 11556208_1
by DSInvestor
Sun Jan 20, 2019 11:43 am
Forum: Investing - Theory, News & General
Topic: Roth IRA Basis Ordering Rules
Replies: 6
Views: 357

Re: Roth IRA Basis Ordering Rules

What about Recharacterized Contributions? I believe these are considered Regular Contributions correct? Example: A $5,000 contribution during tax year to a Traditional IRA. January of subsequent year the $5,000 plus related $600 of growth are converted by Vanguard to Roth IRA. This is reported on F...
by DSInvestor
Sat Jan 19, 2019 1:21 pm
Forum: Investing - Theory, News & General
Topic: Roth IRA Basis Ordering Rules
Replies: 6
Views: 357

Re: Roth IRA Basis Ordering Rules

What about Recharacterized Contributions? I believe these are considered Regular Contributions correct? Example: A $5,000 contribution during tax year to a Traditional IRA. January of subsequent year the $5,000 plus related $600 of growth are converted by Vanguard to Roth IRA. This is reported on F...
by DSInvestor
Sun Jan 13, 2019 6:23 pm
Forum: Personal Finance (Not Investing)
Topic: Part time work and taxes
Replies: 5
Views: 574

Re: Part time work and taxes

When your 2 W-2 forms are entered into your tax return, you will be refunded the employee portion of social security that is above the max.
by DSInvestor
Sun Jan 13, 2019 2:57 pm
Forum: Investing - Help with Personal Investments
Topic: Vanguard PRIMECAP and Capital Opportunity
Replies: 48
Views: 2830

Re: Vanguard PRIMECAP and Capital Opportunity

Both very tax inefficient. Do not hold in taxable accounts.
by DSInvestor
Sun Jan 13, 2019 1:36 pm
Forum: Investing - Help with Personal Investments
Topic: Roast my portfolio. VEMAX instead of VTIAX?
Replies: 20
Views: 1508

Re: Roast my portfolio. VEMAX instead of VTIAX?

What assets do you have in tax advantaged accounts? If you're retired early and living off a taxable account, you can take advantage of low cost or even tax free Roth conversions to fill up 0% brackets provided by standard deduction and also by the favorable tax treatment of Qualified Dividend Incom...
by DSInvestor
Sat Jan 12, 2019 1:19 am
Forum: Personal Finance (Not Investing)
Topic: Roth conversion
Replies: 36
Views: 2933

Re: Roth conversion

An increase in income could cause disqualification for a ACA health insurance premium tax credit or trigger medicare IRMAA (Income related monthly adjustment amount). The ACA premium tax credit could be substantial (>10-20K depending on age). When I ran numbers on the KFF calculator, a couple age 6...
by DSInvestor
Fri Jan 11, 2019 1:13 pm
Forum: Personal Finance (Not Investing)
Topic: Roth conversion
Replies: 36
Views: 2933

Re: Roth conversion

An increase in income could cause disqualification for a ACA health insurance premium tax credit or trigger medicare IRMAA (Income related monthly adjustment amount). The ACA premium tax credit could be substantial (>10-20K depending on age). When I ran numbers on the KFF calculator, a couple age 64...
by DSInvestor
Thu Jan 03, 2019 1:06 am
Forum: Investing - Help with Personal Investments
Topic: Confirm I’m Doing Backdoor Roth IRA Correctly
Replies: 7
Views: 885

Re: Confirm I’m Doing Backdoor Roth IRA Correctly

Yes. When you tell your 2018 tax return about the 2018 Traditional IRA contribution, the tax software will determine whether that contribution was deductible or non-deductible. If you're high income and covered by employer plan (TSP), your contribution will be non-deductible (IRA basis). As such, th...
by DSInvestor
Sun Dec 30, 2018 8:12 pm
Forum: Investing - Help with Personal Investments
Topic: Too Heavy in Real Estate?
Replies: 12
Views: 978

Re: Too Heavy in Real Estate?

VBIAX is Vanguard Balanced Index Admiral and is not tax efficient as the bond portion of the fund throws off significant non-qualified dividend income. You're high income and live in a state with high state income tax. Consider more tax efficient options for the taxable account. Vanguard Total Stock...
by DSInvestor
Fri Dec 28, 2018 1:38 pm
Forum: Personal Finance (Not Investing)
Topic: Roth Conversion Paying Taxes with IRA?
Replies: 16
Views: 883

Re: Roth Conversion Paying Taxes with IRA?

What is your age? If under 59.5, be aware that withdrawals from Traditional IRA are subject to 10% early withdrawal penalty. If you withhold taxes on the Roth conversion, then the taxes withheld are technically a withdrawal from the Trad IRA and that amount is subject to 10% early withdrawal penalty...
by DSInvestor
Wed Dec 26, 2018 11:26 am
Forum: Investing - Help with Personal Investments
Topic: what mix of VXUS & VTI = VT?
Replies: 12
Views: 680

Re: what mix of VXUS & VTI = VT?

Here's a link to VT's portfolio and management page that shows allocation by country:
https://investor.vanguard.com/etf/profile/portfolio/vt

USA is about 55% of the fund so maybe go with 55% VTI (Total Stock Market) and 45% VXUS (Total International Stock).
by DSInvestor
Wed Dec 26, 2018 11:14 am
Forum: Personal Finance (Not Investing)
Topic: backdoor roth and FUTURE possible IRAs..
Replies: 14
Views: 769

Re: backdoor roth and FUTURE possible IRAs..

A rollover to IRA will trigger IRA basis proration. Depending on your employer plan and balance you may have the option to keep assets where they are. Alternatively, your new employer plan may accept assets from the old plan. If you have self employed income and are eligible for Solo 401k, you could...
by DSInvestor
Sat Dec 22, 2018 11:35 pm
Forum: Personal Consumer Issues
Topic: Costco Tire Quality Seconds/Blems??
Replies: 31
Views: 2826

Re: Costco Tire Quality Seconds/Blems??

I have Michelin defenders purchased from costco on my Toyota camry, honda civic and Subaru outback. The ones on the Subaru were purchased 3 months ago. No problems with noise on any of the cars.
by DSInvestor
Sat Dec 22, 2018 9:41 pm
Forum: Investing - Help with Personal Investments
Topic: Roth conversions while contributing to 401K
Replies: 10
Views: 578

Re: Roth conversions while contributing to 401K

If currently in state with high income tax and considering move to state with low or no income tax, it may make more sense to convert once you've moved to the low/no income tax state. Why volunteer to prepay tax to a high income state tax?
by DSInvestor
Sat Dec 22, 2018 9:34 pm
Forum: Investing - Help with Personal Investments
Topic: Roth conversions while contributing to 401K
Replies: 10
Views: 578

Re: Roth conversions while contributing to 401K

Thanks DSI; I have about 15k non deductible as part of my IRAs that I have kept track of via form 8606 but it is not isolated, so yes I am resigned to needing to keep track of my pro rata basis going forward. If your current 401k allows for inbound rollovers, you can do a rollover into 401k of some...
by DSInvestor
Sat Dec 22, 2018 8:45 pm
Forum: Investing - Help with Personal Investments
Topic: Roth conversions while contributing to 401K
Replies: 10
Views: 578

Re: Roth conversions while contributing to 401K

Currently in the 24% marginal bracket. Now starting a Roth conversion plan. Will work for another year or two. IRA balance is about 1/2 our 401K balance. Small balance in non deductible IRAs. State allows for deductibility of my 401K. Thinking a viable strategy is to do Roth coversions from my IRAs...
by DSInvestor
Sat Dec 22, 2018 3:21 pm
Forum: Investing - Help with Personal Investments
Topic: Can I open a SEP-IRA? Already did backdoor roth
Replies: 6
Views: 353

Re: Can I open a SEP-IRA? Already did backdoor roth

SEP-IRA will interfere with backdoor Roth IRA's Roth conversion step because SEP-IRA balances at year end are considered by form 8606. Since you have already done the Roth conversion in calendar 2018, your 2018 tax return will include 2018 8606 which will look for IRA balances in Traditional IRA, Ro...
by DSInvestor
Fri Dec 21, 2018 4:24 pm
Forum: Investing - Help with Personal Investments
Topic: Stupid backdoor roth IRA question
Replies: 5
Views: 386

Re: Stupid backdoor roth IRA question

The $ came into my account after I converted. I guess I have to then pay tax on the converted .40 cents or what? I guess I thought I could only convert $5500 per year? If you convert 100% of the account, the extra amount of interest moves to Roth IRA as well. If you convert $5500, that leaves that ...
by DSInvestor
Thu Dec 20, 2018 6:33 pm
Forum: Personal Finance (Not Investing)
Topic: Stop extra mortgage payment and put into taxable account?
Replies: 29
Views: 2461

Re: Stop extra mortgage payment and put into taxable account?

I started aggressively paying down mortgage because I lost money no matter what I did. I'm also trying now to follow buy/hold strategy buying index funds and not worrying about it. I still can max out my retirement and add to my taxable while putting extra money towards mortgage so I guess I should...
by DSInvestor
Wed Dec 19, 2018 5:18 pm
Forum: Personal Finance (Not Investing)
Topic: Cell Phone Plan/Carrier Recommendation?
Replies: 26
Views: 2044

Re: Cell Phone Plan/Carrier Recommendation?

I use cricket wireless (uses AT&T network) and have been pretty pleased. We had great signal in most places when taking cross country road trips. Our plan also allows us to use our phones in Canada and Mexico without fear of roaming charges. internet speed is capped at 8Mbps which is plenty for us. ...
by DSInvestor
Tue Dec 18, 2018 9:32 pm
Forum: Investing - Help with Personal Investments
Topic: Confirmation of backdoor Roth before pulling trigger
Replies: 6
Views: 273

Re: Confirmation of backdoor Roth before pulling trigger

You'll need to file form 8606 for those prior years as the IRA basis accumulates. For example, the $5500 IRA basis from 2016's 8606 form flows into line 2 of the 2017 8606 form, which in turn flows into line 2 of the 2018 form 8606. You can find prior year versions for these forms and instructions a...
by DSInvestor
Thu Dec 13, 2018 11:44 pm
Forum: Investing - Help with Personal Investments
Topic: Question about Spousal Roth
Replies: 2
Views: 220

Re: Question about Spousal Roth

They must file their taxes as married filing jointly (MFJ) in order for her to make spousal IRA contribution (i.e. based on income of spouse). Keep in mind that their combined income is considered to determine Roth IRA eligibility when they file as MFJ.
by DSInvestor
Thu Dec 13, 2018 9:37 pm
Forum: Investing - Theory, News & General
Topic: Transfer ira from one vanguard fund to another vanguard fund
Replies: 12
Views: 694

Re: Transfer ira from one vanguard fund to another vanguard fund

You can exchange from one fund to another. Really easy to do online or over the phone with a representative. I do mine online. You can exchange any amount. If you have not yet established the fund position in the second (exchange to) fund, you'd need to exchange enough to meet the minimum initial re...
by DSInvestor
Thu Dec 13, 2018 8:57 pm
Forum: Personal Consumer Issues
Topic: Easy app for slideshows over TV?
Replies: 5
Views: 281

Re: Easy app for slideshows over TV?

Photos app on the iPad has an easy slideshow function that you can project to the appletv through AirPlay. Actually that looks like it will work well enough for my use. Thanks! Will save a ton of time. Looks like that feature is only on the iPad and not the iPhone. AirPlay works on iPhone as well.
by DSInvestor
Thu Dec 13, 2018 11:51 am
Forum: Personal Consumer Issues
Topic: Anything to prevent switching iPhones?
Replies: 10
Views: 979

Re: Anything to prevent switching iPhones?

I would not replace a company supplied phone or computer with one that I bought myself. Many companies tend to have strict policies regarding computer equipment, network access, security.
by DSInvestor
Sat Dec 01, 2018 4:31 pm
Forum: Personal Consumer Issues
Topic: Why is Costco gas so much cheaper
Replies: 119
Views: 10804

Re: Why is Costco gas so much cheaper

Costco : $2.79 credit Fred Meyer: $2.84 credit Safeway: $2.89 credit Shell: $3.29 cash add 0.10 for credit Mobil: $3.39 cash add 0.10 for credit Chevron: $3.09 add 0.10 for credit Gas stations in our area are allowed to charge higher price for credit card but Costco, Fred Meyer (part of Kroger) and ...
by DSInvestor
Sat Nov 24, 2018 2:52 pm
Forum: Investing - Help with Personal Investments
Topic: Help with Bond Options in 401K
Replies: 3
Views: 233

Re: Help with Bond Options in 401K

Many readers will not be familiar with these ticker symbols. For future posts, you will get better responses if you provide the names and tickers of funds. For now, I have looked them up. VFIJX - Vanguard GNMA Admiral er=0.11% VFSUX - Vanguard Short Term Investment Grade bond Admiral er=0.10% VBILX ...
by DSInvestor
Fri Nov 23, 2018 9:50 pm
Forum: Investing - Help with Personal Investments
Topic: Roth conversion in a low income year.
Replies: 11
Views: 1322

Re: Roth conversion in a low income year.

Adjusted Gross Income (AGI) - standard deduction = Taxable Income. If she has 12K standard deduction, she could have 12K AGI and still have zero taxable income. 3K of income + 9K conversion results in 12K AGI and zero taxable income. This should result in zero fed income tax liability. If she reside...
by DSInvestor
Fri Nov 23, 2018 11:40 am
Forum: Investing - Help with Personal Investments
Topic: Will cap gain and dividend count as wash sale?
Replies: 5
Views: 341

Re: Will cap gain and dividend count as wash sale?

If you reinvest the capital gains and dividend distributions and acquire new shares of the fund within the wash sale window, you will have a wash sale. Stop reinvestment of those distributions and you should be fine. If you're investing using an automatic transaction to buy monthly, stop that as wel...
by DSInvestor
Thu Nov 22, 2018 1:16 pm
Forum: Investing - Help with Personal Investments
Topic: Solo 401K
Replies: 19
Views: 1368

Re: Solo 401K

If your son's self employed business is a corporation where he is paid a W-2 salary, the employee salary deferral contribution must be withheld from his paycheck(s). If this is the case, he is running out of 2018 paychecks to make employee contributions. If he wishes to contribute 18.5K employee sal...
by DSInvestor
Wed Nov 21, 2018 1:45 pm
Forum: Personal Consumer Issues
Topic: Looking for a car that can handle a long commute, any suggestions?
Replies: 74
Views: 5221

Re: Looking for a car that can handle a long commute, any suggestions?

CobraKai wrote:
Wed Nov 21, 2018 12:51 pm
Need something that will hold up in the snow and ice as well.
Winter tires are a great option for any car if driving in snow and ice. If you get lots of snow in your area or like to take forest service roads to access trailheads on days off, maybe consider a car with higher clearance.
by DSInvestor
Wed Nov 21, 2018 1:28 pm
Forum: Investing - Theory, News & General
Topic: Is selling Vfiax and buying Vtsax considered too similar for Wash Sale?
Replies: 7
Views: 700

Re: Is selling Vfiax and buying Vtsax considered too similar for Wash Sale?

VFIAX to VTSAX - not substantially identical. One fund holds 500 stocks, the other holds thousands. No wash sale. VFIAX to VOO is substantially identical as they are share classes of the same fund. VFIAX to VTIAX - not substantially identical so no wash sale. FYI. You do not have to sell VFIAX (500 ...
by DSInvestor
Mon Nov 19, 2018 11:55 pm
Forum: Investing - Help with Personal Investments
Topic: Market Timing? - Transferring funds to 3 fund portfolio and rebalancing to lower asset allocation at same time
Replies: 11
Views: 1036

Re: Market Timing? - Transferring funds to 3 fund portfolio and rebalancing to lower asset allocation at same time

What is your portfolio invested in right now? Say you're in a Target retirement fund with 70/30 AA where it holds US stocks, international stocks and bonds. Your new three fund portfolio of 65/35 is still going to hold US stocks, international stocks and bonds. If US and international stocks recover...
by DSInvestor
Mon Nov 19, 2018 11:32 pm
Forum: Personal Finance (Not Investing)
Topic: Backdoor Roth IRA question
Replies: 5
Views: 601

Re: Backdoor Roth IRA question

Welcome to the forum. You didn't make any mistake. Assuming your TIRA contribution was fully non-deductible (due to coverage by employer plan and high income), you'd have $5500 IRA basis. If you had no other assets in TIRA, SIMPLE-IRA, SEP-IRA, Rollover IRA, your conversion of $5500.88 would consume...
by DSInvestor
Mon Nov 19, 2018 10:31 pm
Forum: Personal Finance (Not Investing)
Topic: Roth conversion amount question
Replies: 10
Views: 959

Re: Roth conversion amount question

Which state are you moving to? I believe there are some states with income taxes that do not tax IRA withdrawals and conversions. I believe PA is like this. See this kiplinger.com's page State Taxes vary for Roth conversions - https://www.kiplinger.com/article/taxes/T046-C000-S001-state-taxes-vary-f...
by DSInvestor
Thu Nov 15, 2018 12:35 pm
Forum: Personal Finance (Not Investing)
Topic: ACA MAGI, dependent, and subsidies questions
Replies: 17
Views: 1132

Re: ACA MAGI, dependent, and subsidies questions

If your insurance plan is HSA eligible, HSA contributions will reduce your AGI.
Deadline for 2018 HSA contributions is APRIL 15, 2019 which gives you some time to make contributions to bring down your 2018 AGI if you find out you're over at tax preparation time.
by DSInvestor
Sat Nov 10, 2018 11:49 am
Forum: Investing - Help with Personal Investments
Topic: Solo 401k for Sole proprietorship question
Replies: 5
Views: 423

Re: Solo 401k for Sole proprietorship question

Employer profit share contributions to solo 401k must be Traditional. Employee salary deferral contributions can be Traditional or Roth if your solo 401k plan offers the Roth option. I used Fidelity's self employed 401k which is a great plan with low cost options but did not offer Roth option. I bel...
by DSInvestor
Sat Nov 10, 2018 10:47 am
Forum: Investing - Theory, News & General
Topic: Vanguard lowering Admiral level to $3,000?
Replies: 225
Views: 18431

Re: Admiral share class for total world stock

If you prefer to stick to mutual fund shares, consider a mix of Vanguard Total Stock Market Index Admiral VTSAX er=0.04% plus Vanguard Total International Stock Admiral VTIAX er=0.11%. The weighted average expense ratio of these two funds should be lower than the 0.10% expense ratio of the Total Wor...
by DSInvestor
Sat Nov 03, 2018 1:56 pm
Forum: Investing - Theory, News & General
Topic: Roth conversion strategy
Replies: 19
Views: 2148

Re: Roth conversion strategy

If your taxable holdings are tax efficient, these distributions are likely to be small. If you hold something tax inefficient like Vanguard PRIMECAP, you could be looking at dividend and capital gains distributions exceeding $10K if the holding is relatively large (200+K). When I look up PRIMECAP, ...
by DSInvestor
Thu Nov 01, 2018 2:43 pm
Forum: Investing - Help with Personal Investments
Topic: Time to rebalance
Replies: 3
Views: 423

Re: Time to rebalance

Perhaps you can get your INTL allocation up to target by directing all new contributions to it. Another option is to collect the dividends from other asset classes and use them to buy more international. This avoids the need to sell shares and potentially trigger capital gains taxes to rebalance. If...
by DSInvestor
Thu Nov 01, 2018 12:55 pm
Forum: Investing - Theory, News & General
Topic: Roth conversion strategy
Replies: 19
Views: 2148

Re: Roth conversion strategy

Once a conversion amount has been determined— what is the best strategy for the timing of the conversion? Given that you have constraints on the Roth conversion to stay in your tax bracket, you cannot really know the amount of conversion until you know exactly how much other income you have for the...
by DSInvestor
Thu Nov 01, 2018 12:06 pm
Forum: Investing - Theory, News & General
Topic: Roth conversion strategy
Replies: 19
Views: 2148

Re: Roth conversion strategy

Are you receiving any ACA premium tax subsidy? Be aware that the higher AGI with the Roth conversion could result in loss of the subsidy if your AGI exceeds certain limits. Run your numbers very carefully. If you have taxable accounts, watch out for year end dividend and/or capital gains distributio...
by DSInvestor
Mon Oct 22, 2018 11:16 pm
Forum: Personal Consumer Issues
Topic: Hulu & NBC
Replies: 16
Views: 1404

Re: Hulu & NBC

Hulu has NBC tv shows but not sports.
by DSInvestor
Sun Oct 21, 2018 11:54 pm
Forum: Personal Finance (Not Investing)
Topic: Roth contribution limits for married filing separately
Replies: 16
Views: 1024

Re: Roth contribution limits for married filing separately

So far I'm seeing no downside to MFJ for us. My income is a lot lower (it's all dividends and interest, except for a little consulting, and Roth conversions), but my AGI is still $50K or so (aiming for top of 12% bracket with $12K standard deduction). Are you getting Premium Tax Credit for health i...
by DSInvestor
Sat Oct 13, 2018 9:40 am
Forum: Personal Finance (Not Investing)
Topic: Capital loss & Filing Separately
Replies: 4
Views: 388

Re: Capital loss & Filing Separately

If you're receiving an ACA premium tax credit, be aware that filing separately on your federal tax return will make you ineligible for the credit which may cost far more than the $1500 saved in OH state taxes. Filing separately also greatly lowers the income limit for Roth IRA contributions. If MAGI...