Search found 164 matches

by Pigeye Brewster
Sat Apr 14, 2018 10:45 pm
Forum: Personal Finance (Not Investing)
Topic: DAF question
Replies: 18
Views: 1130

Re: DAF question

A key to fulfilling a pledge and using a DAF is whether the pledge is a contractual obligation (legally enforceable). An organization I have been part of for many decades has had campaigns from time to time and requested pledges, but the pledges are absolutely not contractual obligations. I suspect...
by Pigeye Brewster
Fri Apr 13, 2018 2:36 pm
Forum: Personal Finance (Not Investing)
Topic: DAF question
Replies: 18
Views: 1130

Re: DAF question

The IRS is looking at this particular issue and also whether or not a DAF can be used to pay an existing legally enforceable pledge. They issued Notice 2017-73 last year which summarizes the issues, including public comments they received.

https://www.irs.gov/pub/irs-drop/n-17-73.pdf
by Pigeye Brewster
Fri Apr 13, 2018 2:15 pm
Forum: Investing - Help with Personal Investments
Topic: Why traditional IRA better than Roth IRA
Replies: 87
Views: 6627

Re: Why traditional IRA better than Roth IRA

A law is not a contract. It can be changed at any time, one party (the legislator, that is) can rip it up and rewrite it at any time, no correction is available through the court system. Absolutely. Real estate passive losses were immediately deductible against other ordinary income by nearly all i...
by Pigeye Brewster
Tue Apr 10, 2018 4:21 pm
Forum: Personal Finance (Not Investing)
Topic: Highly Compensated Employee
Replies: 1
Views: 531

Re: Highly Compensated Employee

There are a couple of discrimination testing issues here. If the plan is not a "safe harbor" plan, regular elective contributions, i.e. pre-tax or Roth, for HCEs are subject to ADP and ACP discrimination testing (in safe harbor, they aren't tested). In addition, after-tax contributions are subject t...
by Pigeye Brewster
Mon Apr 09, 2018 2:13 pm
Forum: Investing - Help with Personal Investments
Topic: Taxable or backdoor Roth?
Replies: 20
Views: 802

Re: Taxable or backdoor Roth?

If you have no pre-tax IRA assets then you can make a non-deductible IRA contribution and immediately convert to a Roth IRA with no tax implication. Ok - to make sure I understand what you're saying: If I only have a 401k account and a Roth IRA account, I can open an IRA with a non-deductible IRA c...
by Pigeye Brewster
Sat Apr 07, 2018 12:01 pm
Forum: Investing - Theory, News & General
Topic: What is Megacorp?
Replies: 62
Views: 4451

Re: What is Megacorp?

GE as depicted on 30 Rock when Jack Donaghy and Liz Lemon attended the "Retreat to Move Forward". Jack met with the "Six Sigmas", then he and Liz later had L.U.N.C.H. ("Lego Utilization for Negating Crisis Hierarchies") and C.L.A.S.S. ("Consuming Lunch And Simple Socializing").
by Pigeye Brewster
Sat Apr 07, 2018 10:43 am
Forum: Investing - Theory, News & General
Topic: What is Megacorp?
Replies: 62
Views: 4451

Re: What is Megacorp?

[ Yes, Acme is known for its incredibly broad product line. Their biggest challenge is that they are very dependent on one customer for the bulk of their revenue. :beer Also most of their stuff failed spectacularly and always at the most critical moment. :) Any Acme engineer would tell you that Mr....
by Pigeye Brewster
Fri Apr 06, 2018 6:50 pm
Forum: Investing - Theory, News & General
Topic: What is Megacorp?
Replies: 62
Views: 4451

Re: What is Megacorp?

A big big company, like Spacely Sprockets. Indeed. Spacely Sprockets made Forbes magazine's list of 25 largest fictional companies. Not sure about Cogswell Cogs, though. I was going to cite another example, the Acme Corporation, of Roadrunner fame. Yes, Acme is known for its incredibly broad produc...
by Pigeye Brewster
Fri Apr 06, 2018 4:54 pm
Forum: Investing - Theory, News & General
Topic: What is Megacorp?
Replies: 62
Views: 4451

Re: What is Megacorp?

Nicolas wrote:
Fri Apr 06, 2018 3:05 pm
A big big company, like Spacely Sprockets.
Indeed. Spacely Sprockets made Forbes magazine's list of 25 largest fictional companies.

Not sure about Cogswell Cogs, though.
by Pigeye Brewster
Fri Apr 06, 2018 10:18 am
Forum: Investing - Help with Personal Investments
Topic: Large Single Stock Position - Can't Sell - Retirement Account
Replies: 45
Views: 3043

Re: Large Single Stock Position - Can't Sell - Retirement Account

Why do we have AA? To create a efficient portfolio - to create the best risk adjusted return as possible. One way would be to crave it out into its own asset class. A more standard way is to give the asset a haircut. Illiquid and concentrated positions can be given a haircut in value of 20% to 60% ...
by Pigeye Brewster
Fri Apr 06, 2018 8:53 am
Forum: Investing - Help with Personal Investments
Topic: Large Single Stock Position - Can't Sell - Retirement Account
Replies: 45
Views: 3043

Re: Large Single Stock Position - Can't Sell - Retirement Account

I agree with 4nursebee it isn't clear to me from above statement if you are simply doing mental accounting and splitting hairs OR whether you would be adjusting the proportions of your other assets to meet some predetermined allocation. It certainly appears to be mental accounting in action. The st...
by Pigeye Brewster
Thu Apr 05, 2018 2:41 pm
Forum: Investing - Help with Personal Investments
Topic: After-Tax (and mega back door roth) or Taxable after maxing Roth & 401k?
Replies: 2
Views: 266

Re: After-Tax (and mega back door roth) or Taxable after maxing Roth & 401k?

If you are 1) saving these funds for retirement, 2) your plan and your circumstances allow you to do the mega backdoor Roth, I agree that it is a better option than taxable.
by Pigeye Brewster
Wed Apr 04, 2018 1:25 pm
Forum: Investing - Theory, News & General
Topic: “We’re not making enough money off you”
Replies: 62
Views: 10632

Re: “We’re not making enough money off you”

From the OP:
they would no longer extend to him the special loan service when the next refi cycle is up
by Pigeye Brewster
Tue Apr 03, 2018 3:51 pm
Forum: Investing - Theory, News & General
Topic: Anomaly in S&P 500 monthly returns, Feb and Mar 2000
Replies: 20
Views: 1628

Re: Anomaly in S&P 500 monthly total return for 2/2000 and 3/3000?

Per Bloomberg: Are you using the price index or the total return index ticker? I trust the index providers, which generate the total return index value. Bloomberg is good but I have caught them in errors when calculating reinvested dividends. For US Total Stock, Bloomberg has the price index only. ...
by Pigeye Brewster
Tue Apr 03, 2018 3:46 pm
Forum: Investing - Help with Personal Investments
Topic: Any seasoned advisors to discuss best sectors/mutual funds for market out-performance?
Replies: 93
Views: 4416

Re: Any seasoned advisors to discuss best sectors/mutual funds for market out-performance?

Your opinion of how investing works is in conflict with the thinking of most of the people here. Most of us believe that none of this stuff can be predicted and that it is fruitless to try. But since you are here, why not stick around awhile? There is always a lot to learn from people who have opin...
by Pigeye Brewster
Tue Apr 03, 2018 3:20 pm
Forum: Investing - Theory, News & General
Topic: Anomaly in S&P 500 monthly returns, Feb and Mar 2000
Replies: 20
Views: 1628

Re: Anomaly in S&P 500 monthly total return for 2/2000 and 3/3000?

Per Bloomberg:

Dow Jones US Total Stock Market Index
1/31/2000-2/29/2000 2.240%
2/29/2000-3/31/2000 5.940%

S&P 500 Index
1/31/2000-2/29/2000 -1.894%
2/29/2000-3/31/2000 9.783%
by Pigeye Brewster
Thu Mar 29, 2018 10:10 pm
Forum: Personal Finance (Not Investing)
Topic: Gifting Appreciated Stocks to Grandparent to pay Child's Private School Tuition
Replies: 121
Views: 6583

Re: Gifting Appreciated Stocks to Grandparent to pay Child's Private School Tuition

Whether or not the step transaction doctrine applies, I have grave doubts that this arrangement would constitute a bona fide gift. I did a little research; this article is on point. Question whether gift is valid, or a mere sham, as regards income tax of donor , 125 A.L.R. 779 (1940 & current suppl...
by Pigeye Brewster
Thu Mar 29, 2018 12:20 pm
Forum: Personal Finance (Not Investing)
Topic: Gifting Appreciated Stocks to Grandparent to pay Child's Private School Tuition
Replies: 121
Views: 6583

Re: Gifting Appreciated Stocks to Grandparent to pay Child's Private School Tuition

Minty wrote:
Thu Mar 29, 2018 12:00 pm
Appreciated securities could be donated to schools ... on condition that they be used for tuition.
And this is clearly not allowed.

Per IRS Publication 526:
The contributions must be made to a qualified
organization and not set aside for use by a
specific person.
by Pigeye Brewster
Thu Mar 29, 2018 12:00 pm
Forum: Personal Finance (Not Investing)
Topic: Taxable Investing vs Donor Advisor Fund vs ???
Replies: 9
Views: 390

Re: Taxable Investing vs Donor Advisor Fund vs ???

Depending on how many charities you support, another possible benefit of a DAF is ease of record-keeping for tax purposes. One donation to the DAF versus keeping track of tax receipts from multiple donations.
by Pigeye Brewster
Tue Mar 27, 2018 4:56 pm
Forum: Personal Finance (Not Investing)
Topic: Personal Excess Liability Insurance - Umbrella Insurance
Replies: 55
Views: 3817

Re: Personal Excess Liability Insurance - Umbrella Insurance

Some people say subtract the value of untouchables like your IRA’s 401k’s etc, but then others say factor in your future earnings which also could be attached in a law suit. I cover my net worth and hope for the best. if you are using your net worth as a heuristic for determining the amount of umbr...
by Pigeye Brewster
Tue Mar 27, 2018 4:45 pm
Forum: Personal Finance (Not Investing)
Topic: Gifting Appreciated Stocks to Grandparent to pay Child's Private School Tuition
Replies: 121
Views: 6583

Re: Gifting Appreciated Stocks to Grandparent to pay Child's Private School Tuition

Thanks for all the responses. I guess I should add some more info on the topic. Perhaps the reason it looks so unethical is because everything is happening in the same year. The real goal here is to get rid of individual stocks and taxable account capital gains on the $200k by A) taking advantage o...
by Pigeye Brewster
Wed Mar 21, 2018 8:33 am
Forum: Personal Finance (Not Investing)
Topic: Personal Excess Liability Insurance - Umbrella Insurance
Replies: 55
Views: 3817

Re: Personal Excess Liability Insurance - Umbrella Insurance

Some people say subtract the value of untouchables like your IRA’s 401k’s etc, but then others say factor in your future earnings which also could be attached in a law suit. I cover my net worth and hope for the best. if you are using your net worth as a heuristic for determining the amount of umbr...
by Pigeye Brewster
Mon Mar 19, 2018 5:15 pm
Forum: Investing - Help with Personal Investments
Topic: About to make "catch-up" IRA contribution for the first time
Replies: 12
Views: 760

Re: About to make "catch-up" IRA contribution for the first time

The catch-up contributions for IRAs are just an additional $1,000 on top of any IRA contribution that you already are eligible to make. So if you can't make a traditional or Roth contribution, you can't make a catch-up contribution. Are you or your husband making catch-up contributions to your 401k ...
by Pigeye Brewster
Thu Mar 15, 2018 8:52 am
Forum: Personal Finance (Not Investing)
Topic: Donor Advised Fund - Joint or Solo?
Replies: 12
Views: 702

Re: Donor Advised Fund - Joint or Solo?

When setting up a DAF (at least for Vanguard and Fidelity), you're asked to create a "Name" for the fund, which is included with donations to the recipient charity. IMHO, if using multiple "advisors" (i.e. Husband and Wife, or other family members, etc.), it makes sense to choose an "inclusive" DAF...
by Pigeye Brewster
Tue Mar 13, 2018 9:47 pm
Forum: Personal Finance (Not Investing)
Topic: Any reasons not to donate shares from taxable?
Replies: 42
Views: 1900

Re: Any reasons not to donate shares from taxable?

The Fidelity DAF Letter of Instruction that is sent to Vanguard allows you to pick specific lots. I picked my lowest cost basis shares at Vanguard. Look at section 6: https://www.fidelitycharitable.org/docs/Contribution.pdf My understanding was that having both accounts at Fidelity would allow me t...
by Pigeye Brewster
Tue Mar 13, 2018 4:25 pm
Forum: Personal Finance (Not Investing)
Topic: Any reasons not to donate shares from taxable?
Replies: 42
Views: 1900

Re: Any reasons not to donate shares from taxable?

I'd suggest you try transferring from Vanguard to Fidelity DAF first and see how it goes. You can always do the Vanguard brokerage to Fidelity brokerage at a later date. You mentioned doing DAF transfers a few times per year. Unless there's a compelling reason to do otherwise, one of the nice thing...
by Pigeye Brewster
Tue Mar 13, 2018 4:07 pm
Forum: Personal Finance (Not Investing)
Topic: Need advice re: Liberal Arts Colleges...
Replies: 235
Views: 12382

Re: Need advice re: Liberal Arts Colleges...

About the value of liberal arts educations: Students who flourish at liberal arts colleges leave with marketable skills, namely sophisticated critical reading, writing, thinking, and oral communication skill. Liberal arts colleges also provide their students with greater individual support than do ...
by Pigeye Brewster
Tue Mar 13, 2018 3:59 pm
Forum: Personal Finance (Not Investing)
Topic: Any reasons not to donate shares from taxable?
Replies: 42
Views: 1900

Re: Any reasons not to donate shares from taxable?

A big reason for the flurry was because of the tight time window between the final passage of the tax bill and year-end. That isn't the case now. The times I've transferred from Vanguard mutual fund account to Fidelity DAF, it was easy. At least in terms of how I define it and also in terms of what...
by Pigeye Brewster
Tue Mar 13, 2018 3:37 pm
Forum: Personal Finance (Not Investing)
Topic: Any reasons not to donate shares from taxable?
Replies: 42
Views: 1900

Re: Any reasons not to donate shares from taxable?

Purchase back $1000 worth of shares with the cash I was planning to donate anyway Net result, reset cost basis on $1000 worth of shares, essentially eliminating future tax on those gains I don't think anyone has commented on this. Buying back the donated shares and resetting your cost basis at a po...
by Pigeye Brewster
Tue Mar 13, 2018 1:59 pm
Forum: Personal Finance (Not Investing)
Topic: Any reasons not to donate shares from taxable?
Replies: 42
Views: 1900

Re: Any reasons not to donate shares from taxable?

It's much easier to donate to a DAF from within the same brokerage as the post-tax account, especially if you want donate shares from specific lots. For example, if your post-tax account is with Schwab, use Schwab's DAF ("Schwab Charitable"). Similarly for Fidelity and Vanguard. (If I recall correc...
by Pigeye Brewster
Tue Mar 13, 2018 8:40 am
Forum: Personal Finance (Not Investing)
Topic: Any reasons not to donate shares from taxable?
Replies: 42
Views: 1900

Re: Any reasons not to donate shares from taxable?

It's much easier to donate to a DAF from within the same brokerage as the post-tax account, especially if you want donate shares from specific lots. For example, if your post-tax account is with Schwab, use Schwab's DAF ("Schwab Charitable"). Similarly for Fidelity and Vanguard. (If I recall correc...
by Pigeye Brewster
Mon Mar 12, 2018 10:25 am
Forum: Investing - Help with Personal Investments
Topic: Amount saved by age
Replies: 58
Views: 8199

Re: Amount saved by age

General rule: save and invest as much as you can. Why? The future is uncertain - you can lose your employment, become disabled, experience an unexpected event that insurance does not fully cover or is chronic, an immediate family member may need assistance, etc. Exhibit A = KlangFool. He has been t...
by Pigeye Brewster
Fri Mar 09, 2018 10:05 am
Forum: Investing - Help with Personal Investments
Topic: Ok fellow bogleheads, was the correction scary or nothing?
Replies: 147
Views: 10449

Re: Ok fellow bogleheads, was the correction scary or nothing?

Why is everyone comparing February's drop with 2008? What about February 2016, September 2015, August 2011, and July 2010? Those were all worse than what happened a few weeks ago. Are people's memories that short? All you gotta do is click on a chart of the S&P 500 and look at it. Drawdowns in the ...
by Pigeye Brewster
Tue Mar 06, 2018 4:44 pm
Forum: Investing - Theory, News & General
Topic: Move out of TIAA?
Replies: 19
Views: 2010

Re: Move out of TIAA?

Not much advantage to meeting with your TIAA advisor, in my opinion. One question to understand is whether you have any TIAA Traditional in a restricted account. Do you? I agree that TIAA Traditional can be a valuable asset to hang on to or even just to maintain access to. The version that has full...
by Pigeye Brewster
Tue Mar 06, 2018 9:27 am
Forum: Investing - Theory, News & General
Topic: YTD calculation
Replies: 5
Views: 756

Re: YTD calculation

Bloomberg shows 12/29 price as 26.95 and YTD total return of -2.19%.
by Pigeye Brewster
Mon Mar 05, 2018 6:00 pm
Forum: Personal Finance (Not Investing)
Topic: After tax 401(k) to Roth IRA?
Replies: 17
Views: 892

Re: After tax 401(k) to Roth IRA?

Everything I read says I should have gotten two checks and contributed the ten dollars to my IRA and the $8,000 to the Roth IRA. I did not get two checks and, more importantly, I have already maxed out my $6,500 contribution to my IRA (and back-doored this into my Roth IRA). Any suggestions? Hef Yo...
by Pigeye Brewster
Fri Mar 02, 2018 10:22 pm
Forum: Investing - Help with Personal Investments
Topic: Immediate Traditional to Roth Conversion
Replies: 5
Views: 537

Re: Immediate Traditional to Roth Conversion

MotoTrojan wrote:
Fri Mar 02, 2018 7:15 pm
Some people like to wait a bit so they have a strong story that these two actions were not connected (can't recall the legal phrase) but even if you waited a week it would be fairly obvious.
Legal phrase is "step transaction doctrine".
by Pigeye Brewster
Thu Mar 01, 2018 10:18 pm
Forum: Investing - Theory, News & General
Topic: Treasury Money Market Funds
Replies: 12
Views: 1980

Re: Treasury Money Market Funds

Fidelity® Treasury Only Money Market Fund FDLXX https://fundresearch.fidelity.com/mutual-funds/summary/31617H300 It is all Treasuries (Bills, Strips, Coupons) Why are the returns so low when the 1 mo t-bill is at 1.5%? Daily rate is showing 0.16%! Fidelity is making out like a bandit. That is the y...
by Pigeye Brewster
Thu Mar 01, 2018 10:12 pm
Forum: Investing - Theory, News & General
Topic: Donor Advised Fund (DAF) - Which Company to Use
Replies: 41
Views: 3509

Re: Donor Advised Fund (DAF) - Which Company to Use

Has anyone donated appreciated Vanguard mutual funds to their DAF at Fidelity and is that problematic? I set up a Fidelity DAF last year using Vanguard funds and was pleasantly surprised at how smoothly it went. Two donations, in fact. One to set it up and then a later one before the end of the yea...
by Pigeye Brewster
Tue Feb 27, 2018 8:43 pm
Forum: Personal Finance (Not Investing)
Topic: Mega Backdoor Roth IRA - wait for 401(k) ADP/ACP testing deadlines?
Replies: 3
Views: 672

Re: Mega Backdoor Roth IRA - wait for 401(k) ADP/ACP testing deadlines?

After-tax contributions are subject to ACP testing, even for a safe-harbor plan.
by Pigeye Brewster
Tue Feb 27, 2018 8:15 pm
Forum: Investing - Help with Personal Investments
Topic: Questions about mega-backdoor Roth, and is there any reason NOT to do a mega-backdoor Roth?
Replies: 24
Views: 3309

Re: Questions about mega-backdoor Roth, and is there any reason NOT to do a mega-backdoor Roth?

One thing that concerns me is the ACP test. I would hate to complete the rollover to my Roth IRA, and then find out mega corp failed the ACP test, requiring some of my after-tax contributions be refunded. What a mess that would be. Does anyone know what time of year a company must report and remedy...
by Pigeye Brewster
Tue Feb 27, 2018 12:01 pm
Forum: Personal Consumer Issues
Topic: Question for older bicyclist, coming back from injury
Replies: 42
Views: 2401

Re: Question for older bicyclist, coming back from injury

So sorry to hear about your crash and injuries, but very pleased to hear your helmet protected your melon. Been there, done that, and have a few scars (and a couple of discarded helmets) to show for it. Cycling is a great sport and activity, with many health benefits. But there are some inherent ris...
by Pigeye Brewster
Fri Feb 23, 2018 2:25 pm
Forum: Personal Finance (Not Investing)
Topic: Refund? Not so fast! [Tax refund]
Replies: 30
Views: 2874

Re: Refund? Not so fast!

E-filed on Feb. 12 and refund direct deposited on Feb. 21.
by Pigeye Brewster
Wed Feb 21, 2018 9:52 pm
Forum: Investing - Help with Personal Investments
Topic: Roll Mega backdoor Roth account into backdoor Roth account
Replies: 17
Views: 814

Re: Roll Mega backdoor Roth account into backdoor Roth account

One issue is creditor protection. You'd be mixing qualified plan rollover funds (mega backdoor Roth) with contributed funds (backdoor Roth). Natalie Choate has written that rollover IRAs have slightly better creditor protection than contributory IRAs. Not exactly. Mixing has no effect on the protec...
by Pigeye Brewster
Wed Feb 21, 2018 5:55 pm
Forum: Personal Consumer Issues
Topic: Lawn care, especially bare, shaded spots
Replies: 14
Views: 766

Re: Lawn care, especially bare, shaded spots

Ground covers that I've used for shady areas are 1) liriope aka "monkey grass", 2) mondo grass, and 3) dwarf mondo grass.
by Pigeye Brewster
Wed Feb 21, 2018 4:53 pm
Forum: Investing - Help with Personal Investments
Topic: Roll Mega backdoor Roth account into backdoor Roth account
Replies: 17
Views: 814

Re: Roll Mega backdoor Roth account into backdoor Roth account

I have been doing mega backdoor Roth stuff with FIDO who has my 401k. I just roll the after tax money into a FIDO Roth at FIDO for ease of execution. It's getting large and I want to roll it into my ROTH account at USAA that I use for my annual backdoor Roth. This is to simplify things. Any issues ...
by Pigeye Brewster
Mon Feb 19, 2018 9:53 pm
Forum: Personal Consumer Issues
Topic: What frugal thing did you do today?
Replies: 483
Views: 40754

Re: What frugal thing did you do today?

While in the laundromat I noticed a woman putting her clothes in a dryer. On the phone she told a friend she would be right over. A half hour walk was no problem. So I opened her dryer + threw my clothes in with hers. Got dryed for free. She never knew. This definitely transcends "frugal" and shoul...
by Pigeye Brewster
Mon Feb 19, 2018 9:45 pm
Forum: Investing - Help with Personal Investments
Topic: Creating My Index Portfolio
Replies: 21
Views: 1657

Re: Creating My Index Portfolio

I know Vanguard is the king of the funds and at a glance it looks like Fidelity tries to beat out Vanguard by .05%-0.1% for each comparable fund: One minor correction. The difference between Fidelity and Vanguard is more like .005% to .01%, e.g. .035% versus .04% for the respective total stock fund...
by Pigeye Brewster
Sun Feb 18, 2018 9:26 pm
Forum: Personal Finance (Not Investing)
Topic: The CFA Designation
Replies: 32
Views: 3704

Re: The CFA Designation

I think the CFA designation is very worthwhile to pursue, especially if your already interested in investing concepts and want someway to stand out from the crowd. Just be aware of the major time commitment to get it. I did it when I was in my 20's and I didn't have any family commitments or other ...