Search found 207 matches

by frcabot
Wed Oct 09, 2019 4:20 pm
Forum: Personal Investments
Topic: Employer switching to higher fee 401k admin. What would you do?
Replies: 46
Views: 3163

Re: Employer switching to higher fee 401k admin. What would you do?

I don't think so....The law does not allow a person to roll their elective deferrals (the $19k a year) out of a 401k plan to an IRA while still working there unless they have reached the age of 59.5. And only some plans allow that. Isn't that the basis of being able to do a megabackdoor Roth IRA Af...
by frcabot
Tue Oct 08, 2019 2:46 pm
Forum: Personal Consumer Issues
Topic: Social Security Card as Identification for Real ID
Replies: 78
Views: 5681

Re: Social Security Card as Identification for Real ID

I suppose you can do that. Having your DL certified takes minutes. I was just into our local MV location this last Thursday and I was in and out in under 10 minutes. How I envy you. I live in a big state in CA. A visit to the DMV takes 2+ hours. You can make an appointment 3-4 months out, and it st...
by frcabot
Tue Oct 08, 2019 4:21 am
Forum: Personal Investments
Topic: Employer switching to higher fee 401k admin. What would you do?
Replies: 46
Views: 3163

Re: Employer switching to higher fee 401k admin. What would you do?

Yes, as long as the assets can be traced there is no problem. In other words, just keep the converted Roth separate from any other Roth IRAs. Even if they are commingled the court is theoretically supposed to tease them out but it can be quite difficult because of earnings. In other words, there’s ...
by frcabot
Mon Oct 07, 2019 8:28 pm
Forum: Personal Investments
Topic: Nervous about TLH
Replies: 33
Views: 2251

Re: Nervous about TLH

Out of curiosity? If you use the same broker for all transactions, and they don't mark it as a Wash rule, can the IRS come back later and give you trouble? Yes. The broker is only required to report wash sales on identical securities in the same account. If you sell in your taxable account and buy ...
by frcabot
Mon Oct 07, 2019 7:51 pm
Forum: Personal Investments
Topic: Employer switching to higher fee 401k admin. What would you do?
Replies: 46
Views: 3163

Re: Employer switching to higher fee 401k admin. What would you do?

So, this morning I tried to google again the phrase "IRA protection in California". The McMullen v. Haycock case makes its presence in many of the search results, but many with disclaimers similar the below. https://www.irahelp.com/forum-post/17967-creditor-protection-california This appears to be ...
by frcabot
Mon Oct 07, 2019 6:58 pm
Forum: Personal Investments
Topic: Treasury Index CD
Replies: 9
Views: 774

Re: Treasury Index CD

If a bank offers something unusual, you can be sure it is a good deal for the bank. If it is not unusual, it is also a good deal for the bank. :twisted: This is a pretty small bank in only one state, so I doubt they're doing anything fancy or anything particularly devious. It doesn’t have to be dev...
by frcabot
Mon Oct 07, 2019 6:34 pm
Forum: Personal Consumer Issues
Topic: Social Security Card as Identification for Real ID
Replies: 78
Views: 5681

Re: Social Security Card as Identification for Real ID

If you have a passport, why not just get a passport card to use as your Real ID? One government agency to deal with. I suppose you can do that. Having your DL certified takes minutes. I was just into our local MV location this last Thursday and I was in and out in under 10 minutes. How I envy you. ...
by frcabot
Mon Oct 07, 2019 6:18 pm
Forum: Personal Investments
Topic: Nervous about TLH
Replies: 33
Views: 2251

Re: Nervous about TLH

Out of curiosity? If you use the same broker for all transactions, and they don't mark it as a Wash rule, can the IRS come back later and give you trouble? Yes, but it’s EXTREMELY unlikely. A couple examples where it has happened (very large transactions) are convertible securities (eg selling a st...
by frcabot
Mon Oct 07, 2019 6:10 pm
Forum: Personal Investments
Topic: Treasury Index CD
Replies: 9
Views: 774

Re: Treasury Index CD

So has all the disadvantages of a CD (money locked up) with none of the advantages (only 3 month rate guarantee). We are in a declining rate environment. There are better rates for CDs. Short term bonds are yielding more. I don’t get it. What’s the upside here? Quick google search shows 2.71% APY fo...
by frcabot
Mon Oct 07, 2019 6:00 pm
Forum: Personal Investments
Topic: Nervous about TLH
Replies: 33
Views: 2251

Re: Nervous about TLH

Personally I hope the markets tank forever so I have infinite TLH opportunities! I assume that you mean “forever”, and not the literal forever . What’s the difference? Having the markets tank forever would mean that stocks would decline to zero. I think that would be a problem. :D Not if 100% of yo...
by frcabot
Mon Oct 07, 2019 5:11 pm
Forum: Personal Investments
Topic: Nervous about TLH
Replies: 33
Views: 2251

Re: Nervous about TLH

Stinky wrote:
Mon Oct 07, 2019 5:09 pm
frcabot wrote:
Mon Oct 07, 2019 4:19 pm
Personally I hope the markets tank forever so I have infinite TLH opportunities!
I assume that you mean “forever”, and not the literal forever.
What’s the difference?
by frcabot
Mon Oct 07, 2019 4:19 pm
Forum: Personal Investments
Topic: Nervous about TLH
Replies: 33
Views: 2251

Re: Nervous about TLH

Personally I hope the markets tank forever so I have infinite TLH opportunities!
by frcabot
Mon Oct 07, 2019 4:01 pm
Forum: Personal Investments
Topic: TSM vs TSM Tax Efficiency: Vanguard VTSAX vs Schwab SWTSX
Replies: 18
Views: 5618

Re: Two excellent funds for U.S. stocks

Any insights into the Schwab TSM (SWTSX) fund VS Vanguard's TSM (VTSAX) fund with respect to tax efficiency? (or other performance measures if you like). PGR: I went to Morningstar to learn the after-tax annualized returns of the two Total Market Index Funds: FUND ----- 10 Yrs --- 15 Yrs SWTSX----6...
by frcabot
Mon Oct 07, 2019 4:00 pm
Forum: Personal Investments
Topic: TSM vs TSM Tax Efficiency: Vanguard VTSAX vs Schwab SWTSX
Replies: 18
Views: 5618

Re: TSM vs TSM Tax Efficiency: Vanguard VTSAX vs Schwab SWTSX

CompoundSavvy wrote:
Mon Oct 07, 2019 2:51 pm
Apologies for the simple question but would the tax efficiency difference be meaningless if you held it in a Roth IRA?
Yes. Roth IRA has no taxes.
by frcabot
Mon Oct 07, 2019 3:54 pm
Forum: Personal Investments
Topic: Nervous about TLH
Replies: 33
Views: 2251

Re: Nervous about TLH

Thanks for all the great advice! Would an "exchange" be the way to go to ensure my money remains in the market without a gap of several days while waiting for the trade to settle? I know some people recommend Fidelity funds as good TLH partners, but my money would be out of the market for about one...
by frcabot
Mon Oct 07, 2019 3:49 pm
Forum: Personal Investments
Topic: SEP IRA decisions to make
Replies: 10
Views: 583

Re: SEP IRA decisions to make

Got it. I missed the part in your OP when you said employees wouldn’t be eligible until next year. Thanks for clarifying. Agree if their salaries are small it makes sense to just continue with SEP. Make sure you familiarize yourself with disclosure requirements to employees re SEP (usually need to g...
by frcabot
Mon Oct 07, 2019 2:56 pm
Forum: Personal Investments
Topic: SEP IRA decisions to make
Replies: 10
Views: 583

Re: SEP IRA decisions to make

I don’t understand. If you have employees who qualify (and you definitely do, as they’ve worked for you for 3 consecutive years now), how could you possibly set up a one-person SEP? The whole idea behind a SEP (or a SIMPLE, or a 401(k)) is that ALL eligible employees must participate. I don’t know w...
by frcabot
Mon Oct 07, 2019 2:40 pm
Forum: Personal Investments
Topic: New investor... Am I crazy?
Replies: 42
Views: 3806

Re: New investor... Am I crazy?

To OP, look at underlying holdings of the mutual funds and see what the outperformance is being generated by. The more money you have, the more money high ERs will cost you. If you want to try to outperform the market, you could also invest directly in the underlying stock holdings and save yourself...
by frcabot
Mon Oct 07, 2019 2:35 pm
Forum: Personal Investments
Topic: New investor... Am I crazy?
Replies: 42
Views: 3806

Re: New investor... Am I crazy?

GLState wrote:
Mon Oct 07, 2019 1:49 pm
CSIEX has a 4.75% load.
OLGAX has a 5.25% load.
There are usually a ton of ways to get around a load, including putting in enough money or buying through a broker that has an NTF network.
by frcabot
Mon Oct 07, 2019 2:00 pm
Forum: Personal Investments
Topic: Nervous about TLH
Replies: 33
Views: 2251

Re: Nervous about TLH

It’s not even clear that 2 ETFs from different providers tracking the EXACT SAME INDEX (example: Vanguard 500 Fund, Schwab 500 Fund) would be considered substantially identical—although there’s a good argument that they would be, AFAIK the IRS has never said so. There’s also a pretty good argument t...
by frcabot
Mon Oct 07, 2019 1:13 pm
Forum: Personal Investments
Topic: Nervous about TLH
Replies: 33
Views: 2251

Re: Nervous about TLH

The rule is substantially identical and I don’t think the two mutual funds you referenced would be considered substantially identical since they are different indexes. Wash sales are self-reported and also reported by the brokerage (assuming you’re using the same brokerage) on a 1099-B. The transact...
by frcabot
Mon Oct 07, 2019 12:53 pm
Forum: Personal Consumer Issues
Topic: Social Security Card as Identification for Real ID
Replies: 78
Views: 5681

Re: Social Security Card as Identification for Real ID

If you have a passport, why not just get a passport card to use as your Real ID? One government agency to deal with. I suppose you can do that. Having your DL certified takes minutes. I was just into our local MV location this last Thursday and I was in and out in under 10 minutes. How I envy you. ...
by frcabot
Mon Oct 07, 2019 10:31 am
Forum: Personal Investments
Topic: Excellent Adventure in Taxable?
Replies: 27
Views: 3257

Re: Excellent Adventure in Taxable?

Obviously a strategy where no rebalancing is required would be better from a tax perspective (so holding a single position for a long time), but that doesn’t mean return will be equal. You could still do TMF/UPRO and do yearly rebalancing so you incur LTCG instead of STCG. You can still do quarterly...
by frcabot
Mon Oct 07, 2019 9:56 am
Forum: Personal Investments
Topic: Employer switching to higher fee 401k admin. What would you do?
Replies: 46
Views: 3163

Re: Employer switching to higher fee 401k admin. What would you do?

So, this morning I tried to google again the phrase "IRA protection in California". The McMullen v. Haycock case makes its presence in many of the search results, but many with disclaimers similar the below. https://www.irahelp.com/forum-post/17967-creditor-protection-california This appears to be ...
by frcabot
Mon Oct 07, 2019 9:35 am
Forum: Personal Investments
Topic: Employer switching to higher fee 401k admin. What would you do?
Replies: 46
Views: 3163

Re: Employer switching to higher fee 401k admin. What would you do?

So, this morning I tried to google again the phrase "IRA protection in California". The McMullen v. Haycock case makes its presence in many of the search results, but many with disclaimers similar the below. https://www.irahelp.com/forum-post/17967-creditor-protection-california This appears to be ...
by frcabot
Sun Oct 06, 2019 10:08 pm
Forum: Personal Investments
Topic: TD or Schwab?
Replies: 19
Views: 1602

Re: TD or Schwab?

I prefer TDA due to having better trading platforms, level 2 quotes, etc., but this comes down purely to personal preferences. Schwab has good mutual funds if you prefer mutual funds over ETFs.
by frcabot
Sun Oct 06, 2019 7:14 pm
Forum: Personal Investments
Topic: Employer switching to higher fee 401k admin. What would you do?
Replies: 46
Views: 3163

Re: Employer switching to higher fee 401k admin. What would you do?

And to take it one step further, even if federal bankruptcy protections didn’t apply, and the IRA funds couldn’t be traced to an ERISA plan, then it’s still not as if IRAs wouldn’t receive ANY California protection. A court would just analyze whether the funds were necessary to provide for support i...
by frcabot
Sun Oct 06, 2019 7:00 pm
Forum: Personal Investments
Topic: Employer switching to higher fee 401k admin. What would you do?
Replies: 46
Views: 3163

Re: Employer switching to higher fee 401k admin. What would you do?

In California especially, you should not be rolling over 401k plan funds to an IRA. Creditors with liability judgments can attach your IRA to satisfy the judgment, whereas money is 401k plans is bulletproof. California is notorious for having one of the weakest protections for IRA funds. Yes, Voya ...
by frcabot
Sun Oct 06, 2019 6:16 pm
Forum: Personal Investments
Topic: Employer switching to higher fee 401k admin. What would you do?
Replies: 46
Views: 3163

Re: Employer switching to higher fee 401k admin. What would you do?

In California especially, you should not be rolling over 401k plan funds to an IRA. Creditors with liability judgments can attach your IRA to satisfy the judgment, whereas money is 401k plans is bulletproof. California is notorious for having one of the weakest protections for IRA funds. Yes, Voya ...
by frcabot
Sun Oct 06, 2019 6:16 pm
Forum: Personal Investments
Topic: Employer switching to higher fee 401k admin. What would you do?
Replies: 46
Views: 3163

Re: Employer switching to higher fee 401k admin. What would you do?

In California especially, you should not be rolling over 401k plan funds to an IRA. Creditors with liability judgments can attach your IRA to satisfy the judgment, whereas money is 401k plans is bulletproof. California is notorious for having one of the weakest protections for IRA funds. Yes, Voya ...
by frcabot
Sun Oct 06, 2019 2:26 am
Forum: Personal Investments
Topic: Inheriting an inherited IRA - RMD rules
Replies: 5
Views: 735

Re: Inheriting an inherited IRA - RMD rules

I thought the beneficiary of an INHERITED IRA couldn’t also keep the funds in an inherited Ira, but rather had to take the funds out of the IRA immediately or within 5 years, can’t recall which. Nope, I’m wrong, they take RMDs based on the life expectancy of the original beneficiary (ie wife’s fathe...
by frcabot
Sun Oct 06, 2019 2:24 am
Forum: Personal Investments
Topic: Preferred Stock Index Fund
Replies: 49
Views: 4853

Re: Preferred Stock Index Fund

One plus for preferred stocks over junk/high yield bonds is that some preferred stocks pay out qualified dividends, that are taxed at a lower rate, versus the ordinary income of bonds. I believe there are etfs and mutual funds that invest only in qualified dividend preferred stocks.
by frcabot
Sat Oct 05, 2019 1:34 pm
Forum: Personal Investments
Topic: Where to put cash at Schwab taxable acct
Replies: 18
Views: 2136

Re: Where to put cash at Schwab taxable acct

In my state you would owe state income tax on interest from other states in a national muni fund (so subtract off 5.n% from the muni yield). +1 Yes, you have to hunt for it, the muni funds publish the ownership percentage by state for that tax year, and then you can allocate what's exempt from your...
by frcabot
Sat Oct 05, 2019 3:11 am
Forum: Personal Investments
Topic: Capital Group-American Funds.....
Replies: 16
Views: 1103

Re: Capital Group-American Funds.....

Yes. I checked the 2060 retirement fund offered by AmFunds. It holds 16 different funds — just like I said, an overly complicated offering with a lot of underperforming and muddled underlying funds.
by frcabot
Sat Oct 05, 2019 3:03 am
Forum: Personal Investments
Topic: Capital Group-American Funds.....
Replies: 16
Views: 1103

Re: Capital Group-American Funds.....

Thanks! I'm wondering if the Target date funds from American are in her 401k.....hope she gets back to me soon so I can provide y'all with better info! Target date funds usually aren’t the best option for actively managed funds, because the fund company throws in a bunch of less popular, underperfo...
by frcabot
Sat Oct 05, 2019 2:54 am
Forum: Personal Investments
Topic: Investing in tax exempt bonds over paying down mortgage?
Replies: 12
Views: 754

Re: Investing in tax exempt bonds over paying down mortgage?

The SEC yield is not the distribution yield. Plus, mortgage interest is deductible. But why not put the extra in stocks? Your expected returns would be higher.
by frcabot
Sat Oct 05, 2019 2:49 am
Forum: Personal Investments
Topic: Capital Group-American Funds.....
Replies: 16
Views: 1103

Re: Capital Group-American Funds.....

American Funds has some very good funds with reasonable ERs but it’d help to know which funds are offered and which classes. The Growth Fund of America is usually a good choice.

Also, whole life insurance would be an excellent investment for her. (Just kidding)
by frcabot
Fri Oct 04, 2019 11:32 pm
Forum: Personal Finance (Not Investing)
Topic: gifting
Replies: 30
Views: 1919

Re: gifting

If you are going to have an estate over $11 mil, I’ll echo what the other poster said: you have enough money to consult a tax attorney. If it were me, I would consider gifting $15k per year which could go to mortgage payments. If daughter is married, you can give $15k each for a total of $30k. If yo...
by frcabot
Fri Oct 04, 2019 9:11 pm
Forum: Personal Finance (Not Investing)
Topic: gifting
Replies: 30
Views: 1919

Re: gifting

Just a question, if you gift the full amount of 11 million, what happens when the estate amount decreases and then you die? If you are asking if there will be a clawback from estates after the higher exemption sunsets after 2025, there were proposed regulations released for comment stating that the...
by frcabot
Fri Oct 04, 2019 6:35 pm
Forum: Personal Finance (Not Investing)
Topic: gifting
Replies: 30
Views: 1919

Re: gifting

donall wrote:
Fri Oct 04, 2019 6:14 pm
Just a question, if you gift the full amount of 11 million, what happens when the estate amount decreases and then you die?
You owe estate tax on everything.
by frcabot
Fri Oct 04, 2019 6:33 pm
Forum: Personal Investments
Topic: Stellar Bond Fund Returns - What does this mean?
Replies: 13
Views: 1194

Re: Stellar Bond Fund Returns - What does this mean?

The equity market is efficient but bonds are obviously a bad deal.
by frcabot
Fri Oct 04, 2019 2:17 pm
Forum: Investing - Theory, News & General
Topic: Insurance for mutual funds to guarantee index returns?
Replies: 25
Views: 1818

Re: Insurance for mutual funds to guarantee index returns?

Still, if investors were guaranteed to get a return equal to AT LEAST the index, then it’d be a no-brainer, right? Right! So maybe the big active-management fund companies ought to get behind an idea like this or self-insure Wait, I've got an idea! How about just investing in the S&P500. :sharebeer...
by frcabot
Fri Oct 04, 2019 12:42 pm
Forum: Investing - Theory, News & General
Topic: Insurance for mutual funds to guarantee index returns?
Replies: 25
Views: 1818

Re: Insurance for mutual funds to guarantee index returns?

If active managers want my money, they should put THEIR money where their mouths are. If you want guarantees, you can purchase an annuity. But remember, guarantees aren't cheap. If they did exceed the return of the index, would you let them keep 80% of the excess return while you get 20%? It’s a tw...
by frcabot
Fri Oct 04, 2019 11:15 am
Forum: Investing - Theory, News & General
Topic: Insurance for mutual funds to guarantee index returns?
Replies: 25
Views: 1818

Re: Insurance for mutual funds to guarantee index returns?

But if fund-managers are so confident at their abilities to generate above-average returns, do any funds actually have some sort of insurance policy that pays out in the event a fund manager fails to deliver index returns? Well, no, for 2 reasons. The first is that such a thing is more or less ille...
by frcabot
Fri Oct 04, 2019 10:42 am
Forum: Investing - Theory, News & General
Topic: Insurance for mutual funds to guarantee index returns?
Replies: 25
Views: 1818

Insurance for mutual funds to guarantee index returns?

Active fund managers / salespeople try to hawk actively-managed funds by *hinting* at above-market returns. But if fund-managers are so confident at their abilities to generate above-average returns, do any funds actually have some sort of insurance policy that pays out in the event a fund manager f...
by frcabot
Fri Oct 04, 2019 10:25 am
Forum: Personal Investments
Topic: HEDGEFUNDIE's portfolio: How to create it?
Replies: 39
Views: 2252

Re: HEDGEFUNDIE's portfolio: How to create it?

Hi, I saw this thread called "HEDGEFUNDIE's excellent adventure": https://www.bogleheads.org/forum/viewtopic.php?f=10&t=272007 (also Part II: https://www.bogleheads.org/forum/viewtopic.php?f=10&t=288192) Can someone please tell, how does one create this in Vanguard/Fidelity, or another brokerage? T...
by frcabot
Fri Oct 04, 2019 1:53 am
Forum: Personal Investments
Topic: Registered Investment Advisers typical fees
Replies: 10
Views: 1088

Re: Registered Investment Advisers typical fees

Thank Usagi! I'm entertaining two different advisors. The one is independent CFA who charges an upfront fee of 3500. for the first year and a touch-up hourly fee each year afterwards. The other owns his own investment company, charges no fee's at all and has no RIA, CFA or other designations. He wa...
by frcabot
Fri Oct 04, 2019 1:39 am
Forum: Personal Investments
Topic: PIMIX Income Fund expense ratio . . . . what?!?!?
Replies: 14
Views: 1643

Re: PIMIX Income Fund expense ratio . . . . what?!?!?

johnra wrote:
Fri Oct 04, 2019 1:31 am
1.05 is a bargain--The ER for PONAX (the class A version of PIMIX) is 1.45%.
Some suckers pay a load of 3.75% on top of that. The Class C usually have the highest ERs, here an eye-popping 2.20%. Plus a potential 1% back-end load for the A and C classes.
by frcabot
Fri Oct 04, 2019 1:27 am
Forum: Personal Investments
Topic: Opportunity Zone REIT
Replies: 12
Views: 916

Re: Opportunity Zone REIT

Also, the fees in such investments can often outweigh the envisioned tax savings. So again, tread carefully and make sure the math adds up. Like any other investment, lower fees and more diversification are usually better/safer. https://www.marketwatch.com/story/investors-be-wary-of-these-realestate...