Search found 180 matches

by Pigeye Brewster
Thu Jun 28, 2018 9:47 am
Forum: Investing - Help with Personal Investments
Topic: The "leaving the old 401k where it is" argument
Replies: 30
Views: 3747

Re: The "leaving the old 401k where it is" argument

My question is, does one have to sell the stock at the time of the rollover or can the tax be paid on the basis and the stock held in a brokerage account and sold at a later date? No requirement to sell. You can retain the stock in a brokerage account as long as you want. However, one difference is...
by Pigeye Brewster
Wed Jun 13, 2018 8:46 am
Forum: Personal Finance (Not Investing)
Topic: Social Security: Effect of early claiming on spousal benefit
Replies: 20
Views: 1609

Re: Social Security: Effect of early claiming on spousal benefit

The actual language posted by SSA is here: https://www.ssa.gov/OACT/quickcalc/spouse.html I initially misread it, but I believe it is consistent with what happened above. Spouse gets up to 1/2 PIA, unless spouse is filing before full retirement age. It reads: When a worker files for retirement bene...
by Pigeye Brewster
Fri Jun 08, 2018 3:53 pm
Forum: Investing - Help with Personal Investments
Topic: 401k plan: adding after tax contributions for Mega-backdoor Roth
Replies: 6
Views: 408

Re: 401k plan: adding after tax contributions for Mega-backdoor Roth

If the plan had a safe-harbor provision, then you could bypass the ACP provision. A typical safe-harbor provision is to match 100% of the first 3% plus 50% of the next 2% in contributions. Of course, if your plan does not offer that, in essence you are asking your employer to raise their compensati...
by Pigeye Brewster
Fri Jun 08, 2018 1:32 pm
Forum: Investing - Theory, News & General
Topic: Indexing will fail investors in next decade
Replies: 57
Views: 9072

Re: Indexing will fail investors in next decade

there is so much unmitigated garbage i don't even know where to start. im pissed i gave it a click. also, how anyone published that guy is beyond my comprehension. It's published as an opinion piece by the head of a hedge fund. It's not research. It's simply more fear, uncertainty, and doubt being ...
by Pigeye Brewster
Wed May 16, 2018 4:42 pm
Forum: Investing - Theory, News & General
Topic: 2018 401k limit is $55K - do you max it out? Why/why not?
Replies: 110
Views: 10771

Re: 2018 401k limit is $55K - do you max it out? Why/why not?

Earl Lemongrab wrote:
Tue May 15, 2018 11:33 pm
Mega Backdoor is definitely great if you have it available. I consider this the most useful thing I have ever read on Bogleheads. I wish I had known about it earlier...
I agree 100% with this.
by Pigeye Brewster
Tue May 15, 2018 9:15 pm
Forum: Personal Consumer Issues
Topic: Neighbor wants to use our land temporarily - let them or not?
Replies: 48
Views: 6364

Re: Neighbor wants to use our land temporarily - let them or not?

As a gentle suggestion she said during Hurricane Irma the top of one of our pine trees broke off and landed on their pool cage and part of their roof. My understanding is that this would be considered an "act of God" and you don't have any liability. If you did, you probably would have heard from t...
by Pigeye Brewster
Mon May 14, 2018 9:44 am
Forum: Investing - Theory, News & General
Topic: Why is Fidelity more picky than banks about middle names?
Replies: 10
Views: 1769

Re: Why are Vanguard and Fidelity more picky than banks about middle names?

MnD wrote:
Sun May 13, 2018 11:31 pm
2015 wrote:
Sun May 13, 2018 7:11 pm
In fact, no financial institution has ever had the ridiculous legal first name my parents thought to give me at birth.
What is it? :shock:
Cosmo?
by Pigeye Brewster
Mon May 07, 2018 8:59 pm
Forum: Personal Finance (Not Investing)
Topic: Means of Titling/Re-Titling [checking acct into] my RLT?
Replies: 20
Views: 1211

Re: Means of Titling/Re-Titling [checking acct into] my RLT?

One simple workaround is to utilize a payable on death designation naming the trust as the payee. At death, the checking account is automatically transferred to the trust. This doesn't have any utility for what I consider the must important function of a trust: having a fully credentialed individua...
by Pigeye Brewster
Mon May 07, 2018 8:38 pm
Forum: Personal Finance (Not Investing)
Topic: Means of Titling/Re-Titling [checking acct into] my RLT?
Replies: 20
Views: 1211

Re: Means of Titling/Re-Titling [checking acct into] my RLT?

One simple workaround is to utilize a payable on death designation naming the trust as the payee. At death, the checking account is automatically transferred to the trust.
by Pigeye Brewster
Fri May 04, 2018 8:58 pm
Forum: Personal Finance (Not Investing)
Topic: Those with high savings rate: why?
Replies: 246
Views: 32394

Re: Those with high savings rate: why?

desafinado wrote:
Fri May 04, 2018 7:58 pm
...and I don't expect to be employed until 65 without interruption.
KlangFool approves this message. :beer
by Pigeye Brewster
Thu May 03, 2018 4:03 pm
Forum: Investing - Help with Personal Investments
Topic: Company stock in 401k plan question
Replies: 8
Views: 473

Re: Company stock in 401k plan question

Yes, NUA can be a big deal if you have a big unrealized gain in the account attributable to the stock. NUA with a big unrealized gain can be good. 30% in company stock can be bad. Time horizon also should be considered, i.e. not long until retirement in order to utilize NUA with big unrealized gain...
by Pigeye Brewster
Wed May 02, 2018 5:08 pm
Forum: Investing - Theory, News & General
Topic: Taxable Equivalent Yield (TEY)
Replies: 16
Views: 1478

Re: Taxable Equivalent Yield (TEY)

I thought there would be a Wiki article on this, but couldn't find one, and I'm too lazy to write one myself--posting is easier. Rather than repeat this in various threads where it's relevant, I thought I'd put my thoughts on it in one post. When buying fixed-income securities (Treasuries, in-state...
by Pigeye Brewster
Thu Apr 26, 2018 9:18 pm
Forum: Investing - Theory, News & General
Topic: "Tax-Adjusted Asset Allocation: Is It Necessary?"
Replies: 51
Views: 2968

Re: "Tax-Adjusted Asset Allocation: Is It Necessary?"

I track my tax-adjusted asset allocation. In my case, the difference is not significant.
by Pigeye Brewster
Thu Apr 26, 2018 4:23 pm
Forum: Investing - Help with Personal Investments
Topic: Making the decision to do a Roth Conversion
Replies: 46
Views: 3346

Re: Making the decision to do a Roth Conversion

The math is correct if one assumes the taxes will be paid from the tIRA money. It's a little different if one can pay the taxes from cash on hand. E.g., start with $1 million in a tIRA, and $250K available in taxable holdings (with no tax cost for removing the $250K). After converting and paying th...
by Pigeye Brewster
Fri Apr 20, 2018 11:35 pm
Forum: Personal Finance (Not Investing)
Topic: Questions about donating appreciated fund shares
Replies: 14
Views: 1330

Re: Questions about donating appreciated fund shares

I have gifted shares a few times, most recently the process was changed for me on how to gift for aince I was on the brokerage platform and the charitable institution had an older mutual fund account and Vanguard couldn't do across platform gifting (this time) so I had to change ownership of the sh...
by Pigeye Brewster
Fri Apr 20, 2018 3:31 pm
Forum: Investing - Theory, News & General
Topic: KF's simple rules to achieve FI [Financial Independence]
Replies: 451
Views: 32988

Re: KF's simple rules to achieve FI

Folks, The followings are some of the rules that I used. It may work for some folks. On this thread, I will compile some of them and provide the reasoning and thought behind those rules. You should adjust them based on your own circumstances. I am an engineer. So, I am biased towards my income and ...
by Pigeye Brewster
Sat Apr 14, 2018 10:45 pm
Forum: Personal Finance (Not Investing)
Topic: DAF question
Replies: 18
Views: 1323

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: 1323

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: 7918

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: 588

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: 938

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: 4938

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: 4938

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: 4938

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: 4938

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: 3439

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: 3439

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: 321

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: 11459

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: 2047

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: 5726

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: 2047

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: 7241

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: 7241

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: 469

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: 4254

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: 7241

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: 4254

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: 835

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: 805

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: 44
Views: 2228

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: 44
Views: 2228

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: 13555

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: 44
Views: 2228

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: 44
Views: 2228

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: 44
Views: 2228

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: 44
Views: 2228

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: 8671

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: 11196

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 ...