Search found 127 matches

by financeperchance
Wed Nov 20, 2019 6:38 pm
Forum: Investing - Theory, News & General
Topic: EDV (Extended Duration Treasury ETF) has distributions, but where do they come from?
Replies: 4
Views: 309

Re: EDV (Extended Duration Treasury ETF) has distributions, but where do they come from?

Just to reply to my own thread, it looks like I found the answer, from 2009. I'll paste it here in case anyone else ever has the same question: EDV, as with all other ETFs and mutual funds, must distribute recognized income or else pay taxes on it at the fund level. Interest accrued on a zero-coupon...
by financeperchance
Wed Nov 20, 2019 6:32 pm
Forum: Investing - Theory, News & General
Topic: EDV (Extended Duration Treasury ETF) has distributions, but where do they come from?
Replies: 4
Views: 309

Re: EDV (Extended Duration Treasury ETF) has distributions, but where do they come from?

Thesaints wrote:
Wed Nov 20, 2019 6:29 pm
Gains from sales of short term bonds are usually treated as interest received, rather than capital gains.
The earliest maturity date is in 2040.
by financeperchance
Wed Nov 20, 2019 6:21 pm
Forum: Investing - Theory, News & General
Topic: EDV (Extended Duration Treasury ETF) has distributions, but where do they come from?
Replies: 4
Views: 309

EDV (Extended Duration Treasury ETF) has distributions, but where do they come from?

I've been looking at EDV for a possible way to get long-term Treasury exposure, but I'm stumped by how the fund pays a 2.2% yield. The portfolio holdings are here: https://investor.vanguard.com/etf/profile/portfolio/EDV/portfolio-holdings Not one of the bond holdings has any coupons. Thanks for any ...
by financeperchance
Mon Oct 21, 2019 4:51 pm
Forum: Personal Consumer Issues
Topic: BCBS wont pay lab bill...
Replies: 44
Views: 4110

Re: BCBS wont pay lab bill...

Follow the advice here: viewtopic.php?t=270408
by financeperchance
Mon Oct 21, 2019 12:52 pm
Forum: Personal Investments
Topic: Just starting out, baby on the way status check
Replies: 20
Views: 1500

Re: Just starting out, baby on the way status check

Good gosh, the Vanguard Target Retirement 2055 Fund has about that same allocation, and it's so much simpler. Why not just put everything into that, and be done with it?

Congrats on the baby! :sharebeer

And yeah, pay off the auto loan lol.
by financeperchance
Mon Oct 21, 2019 12:37 pm
Forum: Personal Finance (Not Investing)
Topic: My husband says I can retire. Is he right?
Replies: 45
Views: 6218

Re: My husband says I can retire. Is he right?

Have a fun retirement! If it makes you feel better, you could always check out Etsy to see if there's anything there you're interested in doing for a bit of extra income. Also I would bet that you wouldn't necessarily be coasting, because with you retired, you will become a lot more creative at ways...
by financeperchance
Mon Oct 21, 2019 10:44 am
Forum: Personal Finance (Not Investing)
Topic: Pay off Mortgage Before Retiring vs. Taxable Investing
Replies: 38
Views: 3593

Re: Pay off Mortgage Before Retiring vs. Taxable Investing

It's important to add in the refinancing costs. I don't know the exact figures for NYC, but I'd be almost certain it will fall in the range of $5,000 to $10,000 for OP to do that. Once you do that it will eat into a lot of the difference. OP may have the ability and willingness to take the risk, but...
by financeperchance
Mon Oct 21, 2019 10:00 am
Forum: Personal Finance (Not Investing)
Topic: Pay off Mortgage Before Retiring vs. Taxable Investing
Replies: 38
Views: 3593

Re: Pay off Mortgage Before Retiring vs. Taxable Investing

I agree with bertilak. One of the things I like to do is read old Boglehead threads from previous phases of the stock market. If you had posted this exact question in 2009, you would have gotten a chorus of people telling you to pay off the mortgage. Why? Because you'd be guaranteed to get a 4.375% ...
by financeperchance
Mon Oct 21, 2019 7:57 am
Forum: Personal Finance (Not Investing)
Topic: Side Hustle and Possible Retirement Job
Replies: 6
Views: 1205

Re: Side Hustle and Possible Retirement Job

The guy who trims my trees each year is in the position you're talking about. He's comfortably retired from his main job and does the tree trimming for a bit of extra work and cash. He hires a teenager or two to help him out with the heavy lifting. It's a nice business because it's recurring. The go...
by financeperchance
Mon Oct 21, 2019 7:47 am
Forum: Personal Finance (Not Investing)
Topic: Planning to take some money out of roth ira
Replies: 22
Views: 2452

Re: Planning to take some money out of roth ira

Hello, I am below 59 but I plan to take some money out of my roth ira. Is there anything anyone can say to talk you out of this terrible idea? Look at what mcblum said for example. I've worked with a lot of people of retirement age who have a very sweet deal with their Roth IRAs. Imagine getting ju...
by financeperchance
Sun Oct 20, 2019 11:42 am
Forum: Investing - Theory, News & General
Topic: Investing for the "great sag" - Dalio
Replies: 65
Views: 10377

Re: Investing for the "great sag" - Dalio

Always check these CNBC hedgefund "gurus" on the Tip Ranks website before deciding whether their opinions carry any special weight.

Image
by financeperchance
Sun Oct 20, 2019 10:01 am
Forum: Personal Investments
Topic: Saving for medium/indefinite term - advice?
Replies: 43
Views: 3365

Re: Saving for medium/indefinite term - advice?

Since my math got "corrected" I'd better chime in one more time. Using the best case scenario of recent returns, at a 10% return (compounded monthly to make the math easier), $4,000 a month invested in stocks will be worth $316,329.52 at the end of year 5. At 2% from a high-yield savings account it'...
by financeperchance
Sat Oct 19, 2019 9:52 am
Forum: Personal Investments
Topic: After tax account allocation
Replies: 13
Views: 1332

Re: After tax account allocation

The standard Boglehead approach is to look at everything as part of one portfolio. So you'd put more tax-efficient things like stock index funds in your taxable account and have taxable bonds in your tax-sheltered accounts. From looking at past history, stocks have usually gone up over 10-year perio...
by financeperchance
Sat Oct 19, 2019 9:44 am
Forum: Personal Investments
Topic: Saving for medium/indefinite term - advice?
Replies: 43
Views: 3365

Re: Saving for medium/indefinite term - advice?

I'm currently leaning in favor of cash for the simple reason that the next ~5 years of my life are uncertain, and I may wish to offset that uncertainty with the stability of cash. Also, the upside of investing over 5 years just doesn't seem that high compared to the potential downside. E.g. if we c...
by financeperchance
Tue Oct 15, 2019 6:21 pm
Forum: Personal Investments
Topic: Saving for medium/indefinite term - advice?
Replies: 43
Views: 3365

Re: Saving for medium/indefinite term - advice?

I'd add the importance of a build-up of cash, as well, which I mentioned above. I think it's probably the sign of being in the 11th year of a bull market, where even on Bogleheads people forget that the stock market really is risky. Cash gives you optionality that bear-market stocks don't, which ca...
by financeperchance
Tue Oct 15, 2019 4:33 pm
Forum: Personal Investments
Topic: Saving for medium/indefinite term - advice?
Replies: 43
Views: 3365

Re: Saving for medium/indefinite term - advice?

Wow! This is an insanely good point about survivorship bias with respect to studies of home ownership. I had never thought of that. Very interesting, and obviously true. I'd add the importance of a build-up of cash, as well, which I mentioned above. I think it's probably the sign of being in the 11t...
by financeperchance
Mon Oct 14, 2019 7:52 pm
Forum: Personal Investments
Topic: Muni Bonds in After Tax Account
Replies: 2
Views: 490

Re: Muni Bonds in After Tax Account

The purpose of bonds in your portfolio is the fact that they tend to zig when the market zags, which smooths out the volatility of your portfolio over time. Their purpose is not so much for the yield -- and keep in mind that if interest rates go down from here, e.g. if there's a severe recession in ...
by financeperchance
Mon Oct 14, 2019 7:45 pm
Forum: Personal Investments
Topic: Saving for medium/indefinite term - advice?
Replies: 43
Views: 3365

Re: Saving for medium/indefinite term - advice?

As a general rule in financial planning, if it's money that's likely to be used that soon, you're better off putting it into savings. The stock market could very well go down 50% in the next five years, right when you could use the cash. To quote Warren Buffett, you don't want to risk what you have ...
by financeperchance
Sat Oct 05, 2019 3:59 pm
Forum: Personal Finance (Not Investing)
Topic: Finance or Accounting Degree?
Replies: 81
Views: 5739

Re: Finance or Accounting Degree?

Math has always come very easily for DS and he has no interest whatsoever in anything STEM. Anyone have any input on which degree (Finance or Accounting) would offer better future opportunities? Accounting would probably offer better job stability /opportunities, but Finance probably has a higher c...
by financeperchance
Sat Oct 05, 2019 11:50 am
Forum: Personal Finance (Not Investing)
Topic: Confused about capital gains taxes owed
Replies: 12
Views: 982

Re: Confused about capital gains taxes owed

Thanks, that actually makes a lot of sense too. Your method would probably be easiest to set up in a spreadsheet, come to think of it, for cap gains scenario calculations. I see it this way. $54,336 income (unless something was sent to 401k/403b/or deductible IRA in which case this number will be lo...
by financeperchance
Sat Oct 05, 2019 11:46 am
Forum: Personal Finance (Not Investing)
Topic: Finance or Accounting Degree?
Replies: 81
Views: 5739

Re: Finance or Accounting Degree?

financeperchance, I disagree with the basic assumptions of 1) Accounting degree = accounting profession. 2) Someone is safe from AI over the next several decades because they are in XYZ profession. The undergraduate degree in any area is a foundation for someone to go further in the future. I belie...
by financeperchance
Sat Oct 05, 2019 11:15 am
Forum: Personal Finance (Not Investing)
Topic: Finance or Accounting Degree?
Replies: 81
Views: 5739

Re: Finance or Accounting Degree?

I do want to point out though that the accounting profession is often cited as one of the most at risk from the rise in artificial intelligence over the next several decades. I'm not sure if that's correct or not for people to worry about that, since like I said the local small business owner is an ...
by financeperchance
Sat Oct 05, 2019 11:11 am
Forum: Personal Finance (Not Investing)
Topic: Finance or Accounting Degree?
Replies: 81
Views: 5739

Re: Finance or Accounting Degree?

I know several small business people, and they absolutely depend on their CPAs. For someone like a local car repair shop owner to fire his accountant would require that accountant to REALLY screw up. As long as the accountant is detail-oriented and reliable, it's one of the most recession-proof occu...
by financeperchance
Sat Oct 05, 2019 9:38 am
Forum: Personal Finance (Not Investing)
Topic: Confused about capital gains taxes owed
Replies: 12
Views: 982

Re: Confused about capital gains taxes owed

https://www.mortgagecalculator.org/calcs/1040-calculator.php Try using this calculator. Assuming MFJ & no dependents & std deduction. Tax is 3203 for ordinary income alone. 5138 including CG. .....so CG taxed at 1935. The CG tax is low because much of your CG is in the 0% tax bracket. AGI=116050; s...
by financeperchance
Fri Oct 04, 2019 6:34 pm
Forum: Personal Finance (Not Investing)
Topic: Side income ideas for a non-lawyer JD holder?
Replies: 30
Views: 2136

Re: Side income ideas for a non-lawyer JD holder?

My spouse and I are about 3 years away - at our current savings rate - from being financially independent. So I don't feel the need to rock the boat too much in terms of looking for a new job or career. BTW based on that fact, I gotta say I agree with the others who say to get insurance. As Warren ...
by financeperchance
Fri Oct 04, 2019 6:19 pm
Forum: Personal Finance (Not Investing)
Topic: Confused about capital gains taxes owed
Replies: 12
Views: 982

Re: Confused about capital gains taxes owed

Thanks for the help. When I enter the information, Taxcaster has my tax liability at $1,270 for the year if I do not put in the gains and $3,910 if I do. So only $2,690 owed on the approximately $62,000 in gains. Does this sound correct, as a quick 'n dirty estimate? It just seems astonishingly low....
by financeperchance
Fri Oct 04, 2019 6:03 pm
Forum: Personal Finance (Not Investing)
Topic: Confused about capital gains taxes owed
Replies: 12
Views: 982

Re: Confused about capital gains taxes owed

HomeStretch wrote:
Fri Oct 04, 2019 6:02 pm
What is your taxable income?
$54,336 is the total from work etc.
by financeperchance
Fri Oct 04, 2019 5:55 pm
Forum: Personal Finance (Not Investing)
Topic: Side income ideas for a non-lawyer JD holder?
Replies: 30
Views: 2136

Re: Side income ideas for a non-lawyer JD holder?

I would browse upwork.com -- there are various projects there that may be a good fit, such as contract writing or writing law-related articles.
by financeperchance
Fri Oct 04, 2019 5:49 pm
Forum: Personal Finance (Not Investing)
Topic: Confused about capital gains taxes owed
Replies: 12
Views: 982

Confused about capital gains taxes owed

My brain hurts. So much googling and use of taxcaster and online tools and I can't figure it out.

Married filing jointly.
$54,336 in ordinary income.
$61,714 in realized capital gains on sales of stock, all long term gains.

The amount of taxes owed on the capital gains is ___?

Thanks in advance.
by financeperchance
Wed Oct 02, 2019 10:24 pm
Forum: Personal Consumer Issues
Topic: Solar Installation - 0.75 Year Later
Replies: 72
Views: 9883

Re: Solar Installation - 0.75 Year Later

Thanks for this information. You have basically the equivalent of a tax-free bond yielding about 20% a year so far, right? That's amazing!
by financeperchance
Sat Sep 07, 2019 12:33 pm
Forum: Investing - Theory, News & General
Topic: Index Funds Bubble? [Michael Burry article]
Replies: 242
Views: 28261

Re: Index Funds Bubble? [Michael Burry article]

Does anyone here know of an asset class in which the vast majority of investment dollars are unambiguously from indexing? For example, microcap value stocks or some such? It would seem like if you had that answer, it would then be a relatively simple study to look at the individual components and se...
by financeperchance
Sat Sep 07, 2019 12:05 pm
Forum: Investing - Theory, News & General
Topic: Index Funds Bubble? [Michael Burry article]
Replies: 242
Views: 28261

Re: Index Funds Bubble? [Michael Burry article]

Some here might be interested in what folks at Seeking Alpha, the stock picking website, have to say, actually pretty interesting:
https://seekingalpha.com/article/429002 ... ments=show
by financeperchance
Sat Aug 17, 2019 10:45 am
Forum: Personal Investments
Topic: Single-stock investing in taxable or Roth?
Replies: 39
Views: 1890

Re: Single-stock investing in taxable or Roth?

Roth if it goes up Taxable if it goes down I’d go Roth ( but I have access to mega backdoor Roth, so my Roth space isn’t filled yet) This of course is the correct answer. I'd actually give OP's husband the benefit of the doubt. The EMH research points to the fact that in certain instances you actua...
by financeperchance
Fri Aug 16, 2019 1:27 pm
Forum: Personal Investments
Topic: Single-stock investing in taxable or Roth?
Replies: 39
Views: 1890

Re: Single-stock investing in taxable or Roth?

I vote for Roth because you have the optionality of selling the stock without ever worrying about capital gains. It's not just in case there's a buyout or something like that. Do a search for people here at Bogleheads who are stuck holding individual stocks, have changed their minds, but are stuck b...
by financeperchance
Tue Aug 13, 2019 12:41 pm
Forum: Investing - Theory, News & General
Topic: [Vanguard ongoing glitches, August 12-13, 2019]
Replies: 256
Views: 17362

Re: Another Day With Vanguard.Com Down

My paranoia is that the opposite will happen, that I log in and my balance is below what it should be. A lawyer friend says the PDF files of your account statements have as much legal validity these days as paper versions, so I am passing along the tip to download those account statements from your ...
by financeperchance
Tue Aug 13, 2019 12:27 pm
Forum: Investing - Theory, News & General
Topic: [Vanguard ongoing glitches, August 12-13, 2019]
Replies: 256
Views: 17362

Re: [Vanguard ongoing glitches, August 12-13, 2019]

Excuse me but some of us very much want to check the account balance of our life savings. Call it autism, call it lack of a hobby, day trading, whatever. It should not be hard for the largest mutual fund company in the world to get its IT issues fixed. I see Vanguard burn through a lot of money on G...
by financeperchance
Mon Aug 12, 2019 8:31 pm
Forum: Investing - Theory, News & General
Topic: [Vanguard ongoing glitches, August 12-13, 2019]
Replies: 256
Views: 17362

Re: What is happening with Vanguard site?

I am having trouble logging in to the website on both the desktop and the app.
by financeperchance
Tue Jul 16, 2019 6:26 pm
Forum: Personal Finance (Not Investing)
Topic: Tax return filed 4/3/19, still no refund received. How screwed am I?
Replies: 29
Views: 4391

Re: Tax return filed 4/3/19, still no refund received. How screwed am I?

Just as an update, in case anyone finds this thread through Google, my own refund finally came through just now (in mid July after filing at the start of April). Although I'd entered everything correctly into TurboTax and have documentation to back it all up, the mere idea of an IRS audit can be a s...
by financeperchance
Tue Jun 04, 2019 8:07 pm
Forum: Personal Consumer Issues
Topic: Solar - when replacing roof?
Replies: 45
Views: 3414

Re: Solar - when replacing roof?

TravelforFun wrote:
Mon Jun 03, 2019 11:59 am
I did the math. It would take us 7 years to break even. Decided to hold off hoping costs will go down in the future.

TravelforFun
If there were a relatively safe, tax-free bond paying 14% a year, would you buy it?
by financeperchance
Mon May 20, 2019 4:26 pm
Forum: Personal Finance (Not Investing)
Topic: Tax return filed 4/3/19, still no refund received. How screwed am I?
Replies: 29
Views: 4391

Re: Tax return filed 4/3/19, still no refund received. How screwed am I?

haha thanks all, much appreciated. Google wasn't much help to me, so I'm glad to see others have dealt with it too. Will report back if I hear from a grand jury. :)
by financeperchance
Mon May 20, 2019 2:48 pm
Forum: Personal Finance (Not Investing)
Topic: Tax return filed 4/3/19, still no refund received. How screwed am I?
Replies: 29
Views: 4391

Re: Tax return filed 4/3/19, still no refund received. How screwed am I?

kaudrey wrote:
Mon May 20, 2019 2:45 pm
I wouldn't worry - it took about 7 weeks for us to get our refund, which finally came last week. I think they are just slower this year than before.
Thanks! I'm glad to hear that, hopefully it's just a bit of slowness.
by financeperchance
Mon May 20, 2019 2:44 pm
Forum: Personal Finance (Not Investing)
Topic: Tax return filed 4/3/19, still no refund received. How screwed am I?
Replies: 29
Views: 4391

Tax return filed 4/3/19, still no refund received. How screwed am I?

It's now been 6 and a half weeks. I should have gotten back over $4,000 according to Turbotax. Could the fact that it's taken so long be an indicator that they're going to audit me? I had a low income in 2018 to avoid the Obamacare cliff, and I sold a bunch of stock to get the $7,500 EV tax credit. ...
by financeperchance
Tue Mar 12, 2019 1:48 pm
Forum: Personal Finance (Not Investing)
Topic: S corp return: what should you put on "Percentage of time devoted to business" to avoid a red flag with the IRS?
Replies: 7
Views: 678

Re: S corp return: what should you put on "Percentage of time devoted to business" to avoid a red flag with the IRS?

Spirit Rider wrote:
Tue Mar 12, 2019 11:46 am
Are you saying you are have > $500K in total receipts on a business you only spend 10 hours on?
No, so it's not legally required, but TaxAct made me answer the question anyway.
by financeperchance
Tue Mar 12, 2019 11:42 am
Forum: Personal Finance (Not Investing)
Topic: S corp return: what should you put on "Percentage of time devoted to business" to avoid a red flag with the IRS?
Replies: 7
Views: 678

Re: S corp return: what should you put on "Percentage of time devoted to business" to avoid a red flag with the IRS?

I believe the IRS uses this value to determine if you are getting reasonable compensation from your business. In most cases it's not OK to take a $1 salary and receive all the profits in distributions - you have to take a reasonable salary, proportional to your involvement in the business. In my ca...
by financeperchance
Tue Mar 12, 2019 10:53 am
Forum: Personal Finance (Not Investing)
Topic: S corp return: what should you put on "Percentage of time devoted to business" to avoid a red flag with the IRS?
Replies: 7
Views: 678

Re: S corp return: what should you put on "Percentage of time devoted to business" to avoid a red flag with the IRS?

The numerator is 10 hours. If the denominator is a 40-hour work week, the answer is 25%. A week literally has 168 hours though, so that means 6%. (10/168 = 6%) But then, the total of all employee time spent on the S corp (since I'm the only employee) is 10 hours. So then the answer would be 100%. Ho...
by financeperchance
Tue Mar 12, 2019 10:14 am
Forum: Personal Finance (Not Investing)
Topic: S corp return: what should you put on "Percentage of time devoted to business" to avoid a red flag with the IRS?
Replies: 7
Views: 678

S corp return: what should you put on "Percentage of time devoted to business" to avoid a red flag with the IRS?

I have done a thorough Google search and haven't found an answer to this question. I am doing the my 1120S return and TaxAct is forcing me to answer: ---- "Warning: Business Percentage Omitted The time financeperchance devoted to the business has been omitted. Percentage of time devoted to the busin...
by financeperchance
Thu Mar 07, 2019 9:44 pm
Forum: Personal Finance (Not Investing)
Topic: 1120S return... is it advisable to fill it out myself instead of using TaxAct?
Replies: 5
Views: 392

Re: 1120S return... is it advisable to fill it out myself instead of using TaxAct?

If I were you and felt like I knew the numbers I would be comfortable filling them out myself. Your income is so low that I would expect that to not trigger an audit assuming that you do it correctly. I first fill out what I can with TurboTax's version of the 1120S and then take that information to...
by financeperchance
Thu Mar 07, 2019 8:23 pm
Forum: Personal Finance (Not Investing)
Topic: 1120S return... is it advisable to fill it out myself instead of using TaxAct?
Replies: 5
Views: 392

1120S return... is it advisable to fill it out myself instead of using TaxAct?

I have a relatively simple S corp... a digital marketing business with about $47,000 in receipts and very few expenses. Other than the salary to myself and one part-time employee, the expenses are less than $10,000. It's really straightforward. Long story short, TaxAct is killing me. It's so complic...
by financeperchance
Thu Oct 18, 2018 7:33 pm
Forum: Investing - Theory, News & General
Topic: Top stocks of 2000 trail the market over the next 18 years
Replies: 71
Views: 6813

Re: Top stocks of 2000 trail the market over the next 18 years

If your point is that this is a "trend" that "will continue," that thus you can outperform the market by contrarian investing, specifically by counting on reversion to the mean happening regularly enough and predictably enough that you can beat them market just by excluding (or shorting?) the ten l...