Search found 9006 matches

by aristotelian
Sun Apr 11, 2021 3:56 pm
Forum: Personal Finance (Not Investing)
Topic: Backdoor Roth IRA and Pro-rata Rule
Replies: 12
Views: 521

Re: Backdoor Roth IRA and Pro-rata Rule

Do you actually have earned income from self employment?
by aristotelian
Sun Apr 11, 2021 12:21 pm
Forum: Personal Finance (Not Investing)
Topic: DAF - At What $ Level Do Other Options Make Sense?
Replies: 10
Views: 1081

Re: DAF - At What $ Level Do Other Options Make Sense?

Might want to check out this thread. If you are looking to set up a permanent charitable fund, one poster suggested $3M as a number where private foundation could make sense. https://www.bogleheads.org/forum/viewtopic.php?t=330877 Another option would be making direct gifts rather than going through...
by aristotelian
Sun Apr 11, 2021 8:28 am
Forum: Personal Investments
Topic: Is it possible to open and fund a Roth IRA for my kid
Replies: 17
Views: 1191

Re: Is it possible to open and fund a Roth IRA for my kid

Some kids actually earn income. The most common example is child model or actor for the very young ones. Maybe lawnmowing, babysitting, or dog walking for the older ones. I doubt that mowing the family yard or babysitting the younger sibling or walking the family dog will do. I think some people ma...
by aristotelian
Sat Apr 10, 2021 2:43 pm
Forum: Investing - Theory, News & General
Topic: Using savings draw down instead of Roth conversion
Replies: 9
Views: 496

Re: Using savings draw down instead of Roth conversion

Need a bit more info. How much do you plan to spend annually? Do you have any liquid cash or taxable brokerage account? What is the size of your 401k/pretax accounts? What I am getting at is it may be advantageous to convert the pretax assets to Roth - possibly even more than you spend annually - so...
by aristotelian
Sat Apr 10, 2021 2:25 pm
Forum: Personal Finance (Not Investing)
Topic: Theory: The Only Four Situations Justifying Debt
Replies: 103
Views: 6756

Re: Theory: The Only Four Situations Justifying Debt

5. Corollary: pay off credit card debt before all other priorities, period (I have seen professional financial "coaches" advocate saving an emergency fund before paying down CC debt).
by aristotelian
Fri Apr 09, 2021 8:03 pm
Forum: Investing - Theory, News & General
Topic: FSMAX Shows 6% Loss Today?
Replies: 39
Views: 2451

Re: FSMAX Shows 6% Loss Today?

this is interesting... a 5.67% distribution is massive and considering this is a passive fund it's even more insane. What exactly caused this? I am thinking Vanguard Funds avoid this sort of thing. VSMAX shows something similar . I would think it's partly because of Tesla joining the S&P500, th...
by aristotelian
Fri Apr 09, 2021 6:00 pm
Forum: Investing - Theory, News & General
Topic: FSMAX Shows 6% Loss Today?
Replies: 39
Views: 2451

Re: FSMAX Shows 6% Loss Today?

Could the big distribution have something to do with TSLA entering the S&P500?
by aristotelian
Fri Apr 09, 2021 5:33 pm
Forum: Investing - Theory, News & General
Topic: FSMAX Shows 6% Loss Today?
Replies: 39
Views: 2451

Re: FSMAX Shows 6% Loss Today?

Morningstar has it up 0.15%. I am trying to pull up the fund page on Fidelity's site and it's not loading. Could be a glitch?
by aristotelian
Fri Apr 09, 2021 9:00 am
Forum: Investing - Theory, News & General
Topic: Beat the market by only holding after hours
Replies: 56
Views: 3316

Re: Beat the market by only holding after hours

Looks like most of the losses have also occurred when the market is open. I don't see much upside but you never know. If the market was dramatically net negative during the day then this would be something to consider.
by aristotelian
Fri Apr 09, 2021 7:46 am
Forum: Personal Finance (Not Investing)
Topic: CPA Saying I Have Excess HSA Contribution
Replies: 31
Views: 1953

Re: CPA Saying I Have Excess HSA Contribution

There is no actual distinction between employer contribution and employee contribution except that your employer takes your contribution out of your paycheck. That alone proves CPA does not know what he's talking about. Seems like somewhere he entered your wife as having single coverage with you bei...
by aristotelian
Thu Apr 08, 2021 7:37 pm
Forum: Personal Investments
Topic: Sidedoor Roth
Replies: 36
Views: 2370

Re: Sidedoor Roth

Consider this other scenario You put a sell trade for your Roth stocks with a very ask price. You tell your broker to select that particular lot for your your taxable account, even if there are more lots with a lower ask price. One month later, you sell them. Or is not possible to do this off-marke...
by aristotelian
Thu Apr 08, 2021 3:50 pm
Forum: Personal Investments
Topic: Sidedoor Roth
Replies: 36
Views: 2370

Re: Sidedoor Roth

So if market makers are going to get in the way of using option strategies... is there anyway to use 3x leveraged short and long etfs in a similar reverse correlation way? Its my understanding that they decay fast so maybe you could loose big if there was 0 movement. In that case you'd be taking a ...
by aristotelian
Thu Apr 08, 2021 3:16 pm
Forum: Personal Finance (Not Investing)
Topic: New child, dependent care FSA or Child and Dependent Care Credit?
Replies: 6
Views: 523

Re: New child, dependent care FSA or Child and Dependent Care Credit?

FSA is usually slightly better but has the risk of not being used. Since the credit is almost as good, I would do the FSA only for funds you absolutely 100% know are going to be spent.
by aristotelian
Thu Apr 08, 2021 2:01 pm
Forum: Personal Investments
Topic: Sidedoor Roth
Replies: 36
Views: 2370

Re: Sidedoor Roth

The losing money in one account, to gain in another, starts to sound an awful lot like a wash sale, especially when you own both sides of the trade. Regards, The wash sale rule only prevents you from claiming the loss. It does not make the transaction itself prohibited. That's not to say that what ...
by aristotelian
Thu Apr 08, 2021 12:55 pm
Forum: Personal Investments
Topic: Sidedoor Roth
Replies: 36
Views: 2370

Re: Sidedoor Roth

The losing money in one account, to gain in another, starts to sound an awful lot like a wash sale, especially when you own both sides of the trade. Regards, The wash sale rule only prevents you from claiming the loss. It does not make the transaction itself prohibited. That's not to say that what ...
by aristotelian
Thu Apr 08, 2021 7:16 am
Forum: Investing - Theory, News & General
Topic: The Atlantic: The Autopilot Economy -- Economists ... are Worried That Index Funds are Hurting Markets
Replies: 28
Views: 3367

Re: Recent Atlantic article: What do you think the macro economic positive and negatives are of index investing

The assumption is that passive investing is killing active investing. I see zero evidence that is the case. Theoretically, you could have 1% of the market capitalization in active and still have enough trading to enable pricing. I look at the tickers in my watch list and I see stocks going up and do...
by aristotelian
Wed Apr 07, 2021 3:09 pm
Forum: Personal Investments
Topic: Family with 4 little humans: chances of retiring/financial independence
Replies: 70
Views: 7028

Re: Family with 4 little humans: chances of retiring/financial independence

What is your spending? With $250K and $30k contributions, Portfoliovisualizer projects anywhere from $1m real to $5m real. If you assume slightly below the median, that might give about $2M for a budget around $80k.
by aristotelian
Wed Apr 07, 2021 12:26 pm
Forum: Investing - Theory, News & General
Topic: What is your contrarian/alternative play?
Replies: 101
Views: 8565

Re: What is your contrarian/alternative play?

international is contrarian to US, etc. Since US stocks and international (EM + DM) are highly correlated these days, I'm not sure how can contrarian that is. Frontier markets are less correlated (0.60 - 0.67) and are arguably more contrarian. https://www.portfoliovisualizer.com/asset-correlations?...
by aristotelian
Wed Apr 07, 2021 8:48 am
Forum: Investing - Theory, News & General
Topic: What is your contrarian/alternative play?
Replies: 101
Views: 8565

Re: What is your contrarian/alternative play?

Contrarian to what? A diversified portfolio should have built in hedging to a variety of risks. By bond portfolio is contrarian to stocks, international is contrarian to US, etc.
by aristotelian
Wed Apr 07, 2021 8:22 am
Forum: Investing - Theory, News & General
Topic: De-risking, inflation and forward risk tolerance
Replies: 21
Views: 1507

Re: De-risking, inflation and forward risk tolerance

You could reduce the duration of your bond allocation. Should inflation rise in response to inflation, you will not want to be locked into long term bonds at low rates. The risk of short term bonds going down is much lower. Of course, the long term expected return is lower as is potential for going ...
by aristotelian
Tue Apr 06, 2021 9:18 am
Forum: Investing - Theory, News & General
Topic: Vanguard 529 plan change
Replies: 21
Views: 2244

Re: Vanguard 529 plan change

Morningstar has a writeup of the Vanguard/Nevada 529 plan mistakes . I think it's fair to call it a fiasco. The Nevada 529 plan sponsor, their investment consultants, and Vanguard all share in the blame. As it happens, the unintentional higher stock exposure worked out for investors but their mista...
by aristotelian
Tue Apr 06, 2021 6:37 am
Forum: Personal Investments
Topic: Should my parents invest an inheritance? (No current retirement savings)
Replies: 19
Views: 2020

Re: Should my parents invest an inheritance? (No current retirement savings)

The fact that they recently ran up five digits of debt tells me they need a solid emergency fund in something safe and liquid. I would keep $30-40k in a high yield savings account.
by aristotelian
Mon Apr 05, 2021 4:01 pm
Forum: Investing - Theory, News & General
Topic: Ibond really a good vehicle against inflation
Replies: 56
Views: 4700

Re: Ibond really a good vehicle against inflation

One huge problem with iBonds when they are paying a zero of tiny fixed rate in addition to inflation is that when you eventually redeem them you pay taxes on the inflation component so you are virtually guaranteed to lose purchasing power. This example was given in a prior post; So a pair of sneake...
by aristotelian
Sun Apr 04, 2021 6:27 pm
Forum: Investing - Theory, News & General
Topic: Parent contribute to child IRA
Replies: 10
Views: 1361

Re: Parent contribute to child IRA

Just have the child deposit the money. As far as the IRS is concerned, they are contributing to their own account. As long as they have earned income and otherwise qualify, what would be the problem? You can gift up to $15,000 annually without having to report anything to the IRS.
by aristotelian
Sat Apr 03, 2021 11:18 am
Forum: Personal Finance (Not Investing)
Topic: HSABank does not have 1099-SA for transfer to Fidelity. Reflect in tax return?
Replies: 7
Views: 280

Re: HSABank does not have 1099-SA for transfer to Fidelity. Reflect in tax return?

+1, if you did a direct custodian to custodian transfer there should be no 1099R and nothing to report. If you did a manual rollover, you would get a 1099R for the distribution which you would report as a rollover.
by aristotelian
Fri Apr 02, 2021 7:00 pm
Forum: Personal Investments
Topic: Sell stock in taxable account to fund tax-advantage saving accounts?
Replies: 12
Views: 1038

Re: Sell stock in taxable account to fund tax-advantage saving accounts?

Personally I would pull from the emergency fund and invest in cash or a safe bond fund in the Roth until you have replenished the emergency fund. If an emergency occurs you can withdraw the contribution tax free. To me that is preferable to taking a tax hit.
by aristotelian
Fri Apr 02, 2021 9:58 am
Forum: Investing - Theory, News & General
Topic: In what condition, will international significantly overperform US?
Replies: 170
Views: 12391

Re: In what condition, will international significantly overperform US?

If the US outperforms for a while and becomes overvalued, you could at some point see a reversal. For a moment it looked like that might have been happening with tech valuations. We will see if it continues.
by aristotelian
Fri Apr 02, 2021 8:54 am
Forum: Personal Finance (Not Investing)
Topic: Why do I owe so much in Taxes?
Replies: 55
Views: 6734

Re: Why do I owe so much in Taxes?

You have 200k salary and no investment income?
by aristotelian
Fri Apr 02, 2021 8:37 am
Forum: Personal Investments
Topic: Green ETF's
Replies: 4
Views: 267

Re: Green ETF's

Take a look at ESGV (ER .12%). Warning: you are probably going to get tons of flak for reducing diversification and paying that extra 8 basis points. That said, the best choice depends on what exactly you mean by green and what you are trying to achieve. Green could mean anything, from making a conc...
by aristotelian
Fri Apr 02, 2021 7:07 am
Forum: Investing - Theory, News & General
Topic: What’s the correct diversification for high inflation?
Replies: 205
Views: 16653

Re: What’s the correct diversification for high inflation?

I think it is fair to say that TIPS protect you from inflation (hence the name) but that does not mean they guarantee positive real return. Yes, TIPS will go up if inflation goes up, but with current rates you will still be locking in negative real return.
by aristotelian
Wed Mar 31, 2021 2:33 pm
Forum: Personal Investments
Topic: short term strategy for a lot of cash
Replies: 29
Views: 3610

Re: short term strategy for a lot of cash

Just depends on your risk tolerance. With $40k expenses and $5M net work, you are going to be fine no matter what you do with it. Personally I would keep $700k in cash and invest the rest according to your allocation.
by aristotelian
Wed Mar 31, 2021 2:14 pm
Forum: Personal Investments
Topic: Optimizing inherited IRA withdrawls
Replies: 11
Views: 1000

Re: Optimizing inherited IRA withdrawls

Thank you for the feedback. So you're thinking that paying an extra 2% on this money (if I elect to take it up the 24% bracket) wouldn't be worth it? And yes, being a fed, I have to consider the taxable hit of having a pension later in life, although I am hoping to be retired before then, which I w...
by aristotelian
Wed Mar 31, 2021 8:17 am
Forum: Personal Investments
Topic: VGLT is 20% off peak with nearly 2.5% yield
Replies: 12
Views: 1413

Re: VGLT is 20% off peak with nearly 2.5% yield

Sure, especially if your allocation is below target. My LTT position is still just giving back gains from 2020 and it is behaving as I would expect during a recovery.
by aristotelian
Tue Mar 30, 2021 10:21 pm
Forum: Investing - Theory, News & General
Topic: For those using a Roth IRA since the beginning (1998?), what's your balance? (Come on, we're anonymous)
Replies: 68
Views: 6384

Re: For those using a Roth IRA since the beginning (1998?), what's your balance? (Come on, we're anonymous)

We have been contributing since 2004. Wife's IRA is $280k, mine is $180k. She picked some good active funds early on. :moneybag I made some poor stock picks. :oops:
by aristotelian
Tue Mar 30, 2021 1:29 pm
Forum: Investing - Theory, News & General
Topic: Questions about Mortgage as Negative Bonds
Replies: 13
Views: 1130

Re: Questions about Mortgage as Negative Bonds

Going 90/10 versus 100/0 is not going to make any difference with or without the mortgage. If you feel like you need the liquidity and are willing to pay a negative arbitrage, go for it. Once you have the liquidity you need, I would draw a line in the sand and at that point putting all new dollars i...
by aristotelian
Tue Mar 30, 2021 10:34 am
Forum: Investing - Theory, News & General
Topic: Dividends vs no dividends. A case study.
Replies: 53
Views: 3843

Re: Dividends vs no dividends. A case study.

And, yes, I agree with both of those. But my objections to these objections are: - no one is clairvoyant about what taxes will be in the future. You pay now or later. - I do not necessarily believe that companies can re-invest their capital better than, say, the market. Or me, according to my desir...
by aristotelian
Tue Mar 30, 2021 10:11 am
Forum: Investing - Theory, News & General
Topic: Dividends vs no dividends. A case study.
Replies: 53
Views: 3843

Re: Dividends vs no dividends quantified

This makes no sense. Apples to apples, the only difference would be tax paid on the dividend. In a taxable account, one is paying tax on the dividend whether the dividend is reinvested or received in cash. Tony Right. And the tax will be the only difference between the two companies in total return...
by aristotelian
Tue Mar 30, 2021 6:01 am
Forum: Investing - Theory, News & General
Topic: Market crashes. Who causes them?
Replies: 42
Views: 3776

Re: Market crashes. Who causes them?

Who sells off all the stocks that create market crashes? I have read that institutions hold around 78% of all stocks in the US market. I find it hard to believe that these professionals would panic sell enough to create an actual market crash. Yet, it seems unlikely that the remaining 22% of shares...
by aristotelian
Mon Mar 29, 2021 2:36 pm
Forum: Personal Investments
Topic: Single, 32, 1M stock in Taxable/ROTH, should 350k bond in T-IRA be moved to 2040 Target Date?
Replies: 10
Views: 830

Re: Single, 32, 1M stock in Taxable/ROTH, should 350k bond in T-IRA be moved to 2040 Target Date?

There is nothing precluding her from holding bonds in other accounts. I don't see why it would be preferable to have a bigger Traditional IRA at retirement. That just means more dollars subject to income tax. Assuming same dollars invested and overall allocation, I would rather have Roth, taxable, ...
by aristotelian
Mon Mar 29, 2021 1:27 pm
Forum: Personal Finance (Not Investing)
Topic: Paying Sister for Childcare
Replies: 21
Views: 1885

Re: Paying Sister for Childcare

She definitely needs to report the income. You would report the cost as a childcare cost to get the dependent care credit. It is possible you might be allowed to treat her as an independent contractor so you could pay her without having to withhold taxes and FICA, although she would still have to pa...
by aristotelian
Mon Mar 29, 2021 1:11 pm
Forum: Personal Investments
Topic: Single, 32, 1M stock in Taxable/ROTH, should 350k bond in T-IRA be moved to 2040 Target Date?
Replies: 10
Views: 830

Re: Single, 32, 1M stock in Taxable/ROTH, should 350k bond in T-IRA be moved to 2040 Target Date?

Determine her risk tolerance first, then derive her overall allocation from that. Then figure out how to reach the desired allocation in the most tax efficient way. You haven't really told us the answer to the first question. With a long timeframe, she theoretically stands much to gain with an aggr...
by aristotelian
Mon Mar 29, 2021 12:08 pm
Forum: Personal Investments
Topic: Single, 32, 1M stock in Taxable/ROTH, should 350k bond in T-IRA be moved to 2040 Target Date?
Replies: 10
Views: 830

Re: Single, 32, 1M stock in Taxable/ROTH, should 350k bond in T-IRA be moved to 2040 Target Date?

Determine her risk tolerance first, then derive her overall allocation from that. Then figure out how to reach the desired allocation in the most tax efficient way. You haven't really told us the answer to the first question. With a long timeframe, she theoretically stands much to gain with an aggre...
by aristotelian
Mon Mar 29, 2021 11:26 am
Forum: Investing - Theory, News & General
Topic: What’s the correct diversification for high inflation?
Replies: 205
Views: 16653

Re: What’s the correct diversification for hyperinflation?

Long term, the best bet to beat inflation is stocks. The biggest risk with stocks is market risk, of course. Bonds are to hedge against market risk and are most subject to inflation risk. You can buy inflation protect bonds but right now you would be locking in negative real yields. At best they ar...
by aristotelian
Mon Mar 29, 2021 10:34 am
Forum: Investing - Theory, News & General
Topic: Dividends vs no dividends. A case study.
Replies: 53
Views: 3843

Re: Dividends vs no dividends quantified

This makes no sense. Apples to apples, the only difference would be tax paid on the dividend.
by aristotelian
Mon Mar 29, 2021 10:32 am
Forum: Investing - Theory, News & General
Topic: What’s the correct diversification for high inflation?
Replies: 205
Views: 16653

Re: What’s the correct diversification for hyperinflation?

Long term, the best bet to beat inflation is stocks. The biggest risk with stocks is market risk, of course. Bonds are to hedge against market risk and are most subject to inflation risk. You can buy inflation protect bonds but right now you would be locking in negative real yields. At best they are...
by aristotelian
Sun Mar 28, 2021 8:09 pm
Forum: Investing - Theory, News & General
Topic: No T. Rowe Price?
Replies: 74
Views: 7203

Re: No T. Rowe Price?

I recently started reading this forum and truly appreciate the threads and information. I have already picked up some new bits of info. After a couple of days of reading, however, I found that Vanguard and Fidelity dominate discussions on this board. (I own both). Yet not one mention of T. Rowe Pri...
by aristotelian
Sun Mar 28, 2021 3:21 pm
Forum: Investing - Theory, News & General
Topic: Muni funds in a rising interest rate environment
Replies: 15
Views: 1448

Re: Muni funds in a rising interest rate environment

What fund were you looking at? Over a fairly long timeframe I wouldn't expect performance to be too bad unless the fund has longer duration than the time period.
by aristotelian
Sun Mar 28, 2021 12:35 pm
Forum: Investing - Theory, News & General
Topic: Most effective yearly withdrawal strategy in Retirement
Replies: 30
Views: 3047

Re: Most effective yearly withdrawal strategy in Retirement

Basically depends on your personal preference. Do you want to skew your portfolio slightly conservative or keep it rebalanced all the time?
by aristotelian
Sun Mar 28, 2021 11:50 am
Forum: Investing - Theory, News & General
Topic: Vanguard 529 plan change
Replies: 21
Views: 2244

Re: Vanguard 529 plan change

I don't really feel deceived. I knew exactly what my allocation was after the change in October (and was pretty happy with it frankly). It did work out for the better. I want/need to trust the Vanguard methodology for money that will be put to use in a few years. I'm going to stick with the new all...