Search found 481 matches

by Rainmaker41
Sat Feb 16, 2019 10:32 am
Forum: Personal Finance (Not Investing)
Topic: Vanguard Tax 2018 Forms Now Online
Replies: 64
Views: 3843

Re: Vanguard Tax 2018 Forms Now Online

My taxable brokerage account assets consisted of the federal money market fund and some treasury bills. That seems to count as 'non-Vanguard' assets, since it is February 16 and no 1099-INT and 1099-DIV forms are available yet. I interpreted 'mid-February' as meaning next week.
by Rainmaker41
Sat Feb 16, 2019 8:00 am
Forum: Personal Investments
Topic: Partially recharacterize Roth IRA contribution for 2018
Replies: 14
Views: 498

Re: Partially recharacterize Roth IRA contribution for 2018

It is as though you had originally contributed to the Traditional IRA, so the earnings are retroactively kept there (not taxed). The conversion in the next step is different. In both cases you will get 2019, not 2018, forms. The recharacterization still counts as redoing the 2018 contribution though...
by Rainmaker41
Sat Feb 16, 2019 7:08 am
Forum: Personal Investments
Topic: Partially recharacterize Roth IRA contribution for 2018
Replies: 14
Views: 498

Re: Partially recharacterize Roth IRA contribution for 2018

Esssentially, yes. Call Vanguard during trading hours and ask them to recharacterize that dollar amount of your 2018 Roth contribution to Traditional. They will calculate the earnings or losses on your Roth IRA between the contribution date and now, and move today’s value of the recharacterized part...
by Rainmaker41
Sun Feb 10, 2019 11:49 am
Forum: Personal Finance (Not Investing)
Topic: Newlyweds and joint accounts for household expenses
Replies: 120
Views: 5629

Re: Newlyweds and joint accounts for household expenses

I think it is important to ask what you are trying to achieve with whatever setup you use. This or that formal financial system is ultimately less important than the underlying household dynamics and communication. I think you should focus on long term plans and shared goals. The detailed mechanics ...
by Rainmaker41
Fri Feb 01, 2019 7:43 am
Forum: Personal Finance (Not Investing)
Topic: How much do you keep in checking?
Replies: 135
Views: 10304

Re: How much do you keep in checking?

We have checking and savings at Ally Bank (online). We keep 1 month of expenses in checking at the start of every month after credit cards are paid off from the prior month’s spending and before rent is paid. If needed we can instantly transfer money from savings to checking. We have another month o...
by Rainmaker41
Thu Jan 31, 2019 9:11 pm
Forum: Personal Finance (Not Investing)
Topic: Marriage "Benefits"
Replies: 108
Views: 8935

Re: Marriage "Benefits"

In our case, being married saved us over $1.2k in Federal income taxes in 2018 due to the Saver's Credit.

https://www.irs.gov/retirement-plans/pl ... ers-credit
by Rainmaker41
Sun Jan 06, 2019 6:20 pm
Forum: Investing - Theory, News & General
Topic: 2019 Hedge Fund Contest
Replies: 188
Views: 9805

Re: 2019 Hedge Fund Contest

Kitchen Table Economics Recession Fund

Long:

Walmart Inc - WMT
Dollar General Corp - DG

Short:

Apple - AAPL
STARBUCKS CORP - SBUX
by Rainmaker41
Sun Jan 06, 2019 10:22 am
Forum: Personal Finance (Not Investing)
Topic: What Do You Spend The Most On Annually?
Replies: 158
Views: 8389

Re: What Do You Spend The Most On Annually?

I calculate and report our family finances in reference to gross income. Gross income includes everything on W2s, adding back in deductions. Our categories are similar but they are not exactly the same. Here are the 2018 percentages: Retirement Savings (net of cash draw-down from budget "deficit") -...
by Rainmaker41
Sat Jan 05, 2019 5:51 pm
Forum: Personal Consumer Issues
Topic: Paying (paper) cash for daily transactions
Replies: 83
Views: 3793

Re: Paying (paper) cash for daily transactions

We try to do all spending through cashback/bonus credit cards (not debit cards for security reasons), although we have to use cash to load money onto a stored value laundry card for our apartment building. We keep $40 each in our wallets, plus another $20-$40 for the laundry card and $100 for emerge...
by Rainmaker41
Fri Jan 04, 2019 7:05 pm
Forum: Personal Finance (Not Investing)
Topic: 2016 Tax Correction - Worth It? (Likely Investigation)
Replies: 12
Views: 1130

Re: 2016 Tax Correction - Worth It? (Likely Investigation)

Whether it is worth it depends on your family's financial situation. I don't know how the tax rules work, but in general I would strongly encourage you to investigate and be certain of what actions to do before you file any tax documents, report suspected tax fraud by others, etc. Can you go to your...
by Rainmaker41
Fri Jan 04, 2019 6:27 pm
Forum: Personal Investments
Topic: Interesting error: Vanguard taxable brokerage account settlement fund accrued dividend stalled IRA contribution
Replies: 7
Views: 602

Re: Interesting error: Vanguard taxable brokerage account settlement fund accrued dividend stalled IRA contribution

I guess Vanguard needs better systems. That is true, but I will also say as a 35 year IT and systems developer, that as a user, assume that system is not as smart as you and find ways to give it simple, discrete inputs to reduce error. That goes for any system. That makes sense to me. Learning from...
by Rainmaker41
Thu Jan 03, 2019 6:53 pm
Forum: Investing - Theory, News & General
Topic: Social Security for Millennials
Replies: 234
Views: 29150

Re: Social Security for Millennials

Some of these ways (like increasing the contribution cap) would have very little impact on that number or could even bump it up, others (increasing retirement age, taxing payouts more) would have a moderate impact, and some (introducing means-testing) could have a big impact. The floor isn't 71% or...
by Rainmaker41
Thu Jan 03, 2019 6:46 pm
Forum: Personal Investments
Topic: Interesting error: Vanguard taxable brokerage account settlement fund accrued dividend stalled IRA contribution
Replies: 7
Views: 602

Interesting error: Vanguard taxable brokerage account settlement fund accrued dividend stalled IRA contribution

Hello all. I thought I would give a report on an interesting transaction error I encountered with Vanguard this week. On Dec 31, 2018, I had $6,053.76 (including some dividends from prior months and Dec 31) in the settlement fund of my taxable brokerage account. That exact closing balance showed for...
by Rainmaker41
Tue Jan 01, 2019 12:19 pm
Forum: Personal Investments
Topic: Easier to Roth-convert tIRA or recharacterize Roth to tIRA?
Replies: 9
Views: 408

Re: Easier to Roth-convert tIRA or recharacterize Roth to tIRA?

I would prefer making a Traditional IRA contribution and recharacterizing some to Roth if needed, since that gives a bit more flexibility. At the end of 2018 (yesterday), we recharacterized part of a 2018 Roth IRA contribution to Traditional. All that took was a five minute phone call to Vanguard, m...
by Rainmaker41
Wed Nov 21, 2018 7:00 pm
Forum: Personal Investments
Topic: Would you like to review our IPS?
Replies: 7
Views: 969

Re: Would you like to review our IPS?

Thank you KlangFool. I just now saw your response from last month. You raise good points that bear pondering. Maybe we will just keep cloning LifeStrategy Growth 80:20 until we approach our FI number. I’ve focused more on savings rate than on investment details since we wouldn’t change anything for ...
by Rainmaker41
Thu Nov 15, 2018 9:49 pm
Forum: Personal Finance (Not Investing)
Topic: How Long / Hard To Become a Millionaire on Under $100k Income
Replies: 133
Views: 12663

Re: How Long / Hard To Become a Millionaire on Under $100k Income

This question speaks to me. We are a married couple (age 28) living in a high cost of living area. We have no kids and rent an economical studio apartment in the city for low commute costs. Our gross income is under $83k for 2018, but our health insurance costs are less than $1k per year due to good...
by Rainmaker41
Fri Nov 09, 2018 7:14 pm
Forum: Personal Finance (Not Investing)
Topic: FreeTaxUSA.com now has 2018 Return available.
Replies: 41
Views: 4647

Re: FreeTaxUSA.com now has 2018 Return available.

Thanks. I checked our 2018 spreadsheet against FreeTaxUSA and they agreed.
by Rainmaker41
Fri Nov 09, 2018 8:24 am
Forum: US Chapters
Topic: December 9 DC Bogleheads Meeting with Stephen Goss, Chief Actuary of Soc Security
Replies: 28
Views: 3546

Re: Special DC Bogleheads Meeting with Steve Goss, Chief Actuary of Soc Security

My parents will be in town that weekend and are interested, so I may attend with them and my wife (4 people). I was last at a DC area Bogleheads meeting in early 2017 probably.
by Rainmaker41
Wed Oct 24, 2018 9:16 pm
Forum: Personal Investments
Topic: Would you like to review our IPS?
Replies: 7
Views: 969

Re: Would you like to review our IPS?

Thanks. The reason we plan to contribute to pre-tax IRAs is because we will need some of that to get under the saver’s credit cliff. Doing it all pre-tax on January 2, 2019 reflects the optimistic notion that we might need more in pre-tax than we project (have slightly higher income). At the end of ...
by Rainmaker41
Wed Oct 24, 2018 7:40 pm
Forum: Personal Finance (Not Investing)
Topic: traditional IRA tax deduction, convert to ROTH
Replies: 3
Views: 310

Re: traditional IRA tax deduction, convert to ROTH

If he contributes $5,500 to a pre-tax IRA, and then converts $5,500 from the pre-tax IRA to a Roth IRA, he will deduct $5,500 from his income and and then add $5,500 to his income.

The tax filing could be slightly more complicated than that, but that is the gist of it.

There is no free lunch.
by Rainmaker41
Wed Oct 24, 2018 7:31 pm
Forum: Personal Investments
Topic: Would you like to review our IPS?
Replies: 7
Views: 969

Would you like to review our IPS?

I thought it would be a good time to ask if our Investment Policy Statement seems reasonable. Thanks in advance. :sharebeer Investment Policy Statement - (uses 2019 tax figures) Investment Objective Financial Independence by age 60 (end of 2050), or if investments do well, in our 50s. Assume 25% red...
by Rainmaker41
Sun Oct 21, 2018 4:00 pm
Forum: Personal Finance (Not Investing)
Topic: Where would you go for financial guidance if you win the Megamillions?
Replies: 188
Views: 17182

Re: Where would you go for financial guidance if you win the Megamillions?

We'd use a top law firm for a trust or other suitable scheme to stay anonymous. Take the lump sum, then: - 20% to charities and Donor Advised Fund - 40% to taxes - 20% gifted to immediate family - 20% kept as our portfolio As for financial guidance, with that kind of money the asset allocation would...
by Rainmaker41
Fri Oct 19, 2018 5:52 pm
Forum: Personal Consumer Issues
Topic: How long for Social Security to issue new card for name change?
Replies: 1
Views: 287

Re: How long for Social Security to issue new card for name change?

Update: We sent sensitive documents to our local Social Security office 6 weeks ago by certified mail and have proof of delivery. SSA never processed them and told us when we called that they have no record of receipt or the action requested by mail in their computer system, that they would have pro...
by Rainmaker41
Fri Oct 19, 2018 5:49 pm
Forum: Personal Consumer Issues
Topic: How important is registered mail for important documents?
Replies: 28
Views: 1698

Re: How important is registered mail for important documents?

We sent sensitive documents to our local Social Security office 6 weeks ago by certified mail and have proof of delivery. SSA never processed them and told us when we called that they have no record of receipt or the action requested by mail in their computer system, that they would have processed w...
by Rainmaker41
Tue Oct 16, 2018 8:35 pm
Forum: Personal Consumer Issues
Topic: How long for Social Security to issue new card for name change?
Replies: 1
Views: 287

How long for Social Security to issue new card for name change?

I’m wondering what others’ experiences have been. Due to our marriage, my wife is changing her last name. We mailed the necessary application materials to the local SSA office by certified mail, and have proof they were delivered almost 6 weeks ago. The Social Security Administration’s website says ...
by Rainmaker41
Thu Sep 27, 2018 4:07 pm
Forum: Personal Consumer Issues
Topic: Am I the only one...[using multiple accounts]
Replies: 27
Views: 1504

Re: Am I the only one...[using multiple accounts]

We have the following cash accounts: A couple of credit cards Joint Online Checking Joint Online Savings/CDs His & Hers Brick and Mortar Checking (emergency/diversification; part of cash reserve) We don't have different accounts for different expenses, nor do we save up money for specific purchases....
by Rainmaker41
Sat Sep 22, 2018 7:59 am
Forum: Investing - Theory, News & General
Topic: Are We Headed For A Passive Index Meltdown?
Replies: 60
Views: 9497

Re: Are We Headed For A Passive Index Meltdown?

arsenalfan wrote:
Thu Sep 20, 2018 8:29 am
Author is CEO of Mutual Fund Company with ER in 1-3% range.
USGDX their US Government Ultra Short Term Bond Fund has ER 1.03%
Vanguard VUBFX Ultra Short Term Bond Fund ER is 0.2% (and 0.1% Admiral).
+1
by Rainmaker41
Wed Sep 19, 2018 6:40 pm
Forum: Personal Finance (Not Investing)
Topic: General 2018 Tax Question
Replies: 33
Views: 3808

Re: General 2018 Tax Question

So... where do IRA deductions and the retirement savers credit amount go? I suppose on "Schedule 1" and "Schedule 3". I fail to see how this is a simplification which accomplishes anything.

https://www.irs.gov/pub/irs-dft/f1040--dft.pdf
by Rainmaker41
Thu Sep 13, 2018 7:28 am
Forum: Personal Finance (Not Investing)
Topic: reevaluating our life insurance needs
Replies: 6
Views: 585

Re: reevaluating our life insurance needs

Thanks for the input. This bears consideration. We are not homeowners. We might buy a house later on, but we are in a very high cost of living area. It seems more prudent to rent a cost-effective studio in the city that meets our needs. No plans for children but who knows. Our household income is $8...
by Rainmaker41
Wed Sep 12, 2018 8:56 pm
Forum: Personal Finance (Not Investing)
Topic: reevaluating our life insurance needs
Replies: 6
Views: 585

reevaluating our life insurance needs

I am reevaluating our life insurance needs. We are married, in our late 20s, and have no children and no debt. Currently, we each have a $250k 30 year term policy with 29 years remaining. We got these last year when we were starting to organize our household, got married, etc. Our thinking was that ...
by Rainmaker41
Sat Aug 25, 2018 8:10 am
Forum: Personal Consumer Issues
Topic: Strange refund from gas co. on closed account
Replies: 7
Views: 932

Re: Strange refund from gas co. on closed account

Thanks all. I deposited the check without bothering to contact the gas company. The likely explanation that this was a government mandated refund of an overcharge of some kind makes sense.
by Rainmaker41
Mon Aug 20, 2018 4:38 pm
Forum: Personal Finance (Not Investing)
Topic: When is interest income on family loans reported?
Replies: 2
Views: 493

When is interest income on family loans reported?

If we give a personal loan to someone in 2018, charge a given interest rate, but do not require any payments until a later tax year, in which year is the interest counted as taxable income? In 2018, because the interest is earned then but in effect lent out again immediately. Or In the later tax yea...
by Rainmaker41
Fri Aug 10, 2018 10:21 pm
Forum: Personal Investments
Topic: Thanks for first $100k - taxable next?
Replies: 2
Views: 983

Re: Thanks for first $100k - taxable next?

Thanks for the thoughts. That confirms my inclination to keep it simple. I’ll think about reformatting the portfolio, although my 403(b) could be getting some better funds (Vanguard Total Stock, Total International, etc.) this year. I might wait to see what happens there.
by Rainmaker41
Fri Aug 10, 2018 10:06 pm
Forum: Personal Consumer Issues
Topic: Strange refund from gas co. on closed account
Replies: 7
Views: 932

Strange refund from gas co. on closed account

About a year ago, I had moved to my new residence and closed my account with the gas utility company. The account was paid in full. My new residence has no gas, and I’ve had no contact with the gas company since then. I have now revived in the mail a refund check for less than $2. It has my utility ...
by Rainmaker41
Wed Aug 08, 2018 4:52 pm
Forum: Investing - Theory, News & General
Topic: Will rising inflation increase 401K and Roth contribution limits for 2019?
Replies: 29
Views: 7744

Re: Will rising inflation increase 401K and Roth contribution limits for 2019?

Thanks for the info. There’s another $2k / year in retirement space across 401(k)-type plans and IRAs for us MFJ households.
by Rainmaker41
Mon Aug 06, 2018 6:18 pm
Forum: Personal Investments
Topic: Thanks for first $100k - taxable next?
Replies: 2
Views: 983

Thanks for first $100k - taxable next?

I would like to use the occasion of saving our first $100,000 in designated retirement funds to thank the Bogleheads community for my financial education over the past several years. The encouragement of this community, and the clear vision of what investing makes possible, has helped to bring us wh...
by Rainmaker41
Fri Aug 03, 2018 6:47 pm
Forum: Personal Finance (Not Investing)
Topic: Comfort level with Credit Card Balance
Replies: 86
Views: 5955

Re: Comfort level with Credit Card Balance

I submit payments for everything owed to credit card issuers, including legitimate pending charges but less cashback simultaneously applied to the balance, on the 15th and last day of the month. It happens that one card's statement closes on the 15th and another on the 27th but that is technically i...
by Rainmaker41
Fri Jun 29, 2018 4:41 pm
Forum: Personal Finance (Not Investing)
Topic: [Ally online savings now at 2.20%]
Replies: 285
Views: 48519

Re: ALLY BANK savings account RATE increase 1.75%

Funny how it never quite keeps up with inflation. Oh well- that’s the insurance premium for the stability of the emergency fund.
by Rainmaker41
Wed Jun 20, 2018 5:08 pm
Forum: Personal Consumer Issues
Topic: What will (or would) you tip when wages go up?
Replies: 53
Views: 4046

Re: What will (or would) you tip when wages go up?

I have never understood what makes restaurants different from every other kind of business. A company provides goods or services in exchange for the customer's price, out of which costs should be covered with the remainder being profit (assuming a good business model and prices set ‘correctly’ for t...
by Rainmaker41
Sun Jun 17, 2018 8:11 pm
Forum: Investing - Theory, News & General
Topic: What do you sell after the emergency fund?
Replies: 25
Views: 1738

Re: What do you sell after the emergency fund?

Our emergency fund is about 6 months of expenses including a bare-bones marketplace health insurance plan. That would be supplemented by unemployment insurance from the government, whose proceeds would extend our consumption ability by at least a few months, but I've never done the math on that sinc...
by Rainmaker41
Tue Jun 05, 2018 4:58 pm
Forum: Investing - Theory, News & General
Topic: WSJ:Social Security Expected to Dip Into Its Reserves This Year
Replies: 61
Views: 3652

Re: WSJ:Social Security Expected to Dip Into Its Reserves This Year

I plan on receiving the scheduled haircut to 75% of benefits paid for with my payroll taxes, since I will be old enough to claim long after 2034. “Fixes” to Social Security that give a bigger haircut than that to the middle class seem politically unlikely. My expectation is that there will be a fix ...
by Rainmaker41
Sat May 19, 2018 3:24 pm
Forum: Personal Finance (Not Investing)
Topic: What’s your phone/internet bill?
Replies: 92
Views: 7213

Re: What’s your phone/internet bill?

$31.96 / month for Internet access up to 155 Gb. Will increase $10 / month in August and again in 2019 to $51.96 apparently. We own a combined modem-router.

$80 / month for service to two mobile phones. Goes up $10 per line if that line uses more than 2Gb in a month. We own the phones.
by Rainmaker41
Thu May 17, 2018 7:32 pm
Forum: Personal Investments
Topic: Ally No Penalty CD @1.75% vs VMMXX @ 1.87%
Replies: 26
Views: 4424

Re: Ally No Penalty CD @1.75% vs VMMXX @ 1.87%

Or you could get 2% from a 6 month Treasury Bill state-tax free.
by Rainmaker41
Thu May 10, 2018 9:32 pm
Forum: Personal Consumer Issues
Topic: Do we spend too much on food?
Replies: 71
Views: 7177

Re: Do we spend too much on food?

2 adults in a high-cost city.

$400 /month groceries & household (anything eaten or used up like soap or paper towels).

$100 / month on eating out, takeout, etc.
by Rainmaker41
Sun May 06, 2018 2:35 pm
Forum: Personal Consumer Issues
Topic: MetroPCS vs. T-Mobile
Replies: 6
Views: 1614

MetroPCS vs. T-Mobile

Hi. We currently have phone service from T-Mobile for $80 / month. We own our phones outright. "2 Lines TMO ONE All In Promo" $110 monthly cost (10) with autopay (20) with kickback $10 off per line if less than 2 GB of data used (discontinued, but we are grandfathered in) $80 net monthly cost I am c...
by Rainmaker41
Mon Apr 23, 2018 4:58 pm
Forum: Personal Investments
Topic: New Investor but have funds that were set up for me as a minor. Just now taking control of them.
Replies: 7
Views: 1042

Re: New Investor but have funds that were set up for me as a minor. Just now taking control of them.

I’d like to chime in and say that I think your commitment to living below your means, presumably taught to you by your dad if his provisions for you are any indication, is of great value. That you are showing this interest in those investments from the mindset of being a good steward of them demonst...
by Rainmaker41
Mon Apr 23, 2018 7:46 am
Forum: Personal Finance (Not Investing)
Topic: Vanguard Web Site Down?
Replies: 121
Views: 9711

Re: Vanguard Web Site Down?

Down for about 45 minutes since I started trying to get in. IT maintenance needed. Growth does existing customers-owners nothing; costs are already low but account access suffers.
by Rainmaker41
Thu Apr 19, 2018 11:49 am
Forum: Personal Finance (Not Investing)
Topic: How old are you and how much do you save for retirement a year
Replies: 244
Views: 33671

Re: How old are you and how much do you save for retirement a year

Married Filing Joint, age 27. In 2018 we’ll make $82k and contribute $48k to retirement accounts, with a cash on hand reduction of $5k, for net savings of $43k or about 51% of gross income.

No kids or mortgage, and we have a cheap apartment for our city.
by Rainmaker41
Wed Apr 18, 2018 7:26 pm
Forum: Personal Investments
Topic: Change to all pre-tax for max Saver's Credit in 2018? (not 2017 taxes)
Replies: 4
Views: 846

Re: Change to all pre-tax for max Saver's Credit in 2018? (not 2017 taxes)

Thanks. I like that graph.

We'll re-characterize enough Roth IRA contributions at the end of 2017 to come just under the $38k AGI cliff and get a credit for all 2017 Federal tax as you suggested. I've halted Federal tax withholding going forward for that.