Search found 31 matches

by hap_ca
Sun Mar 03, 2019 11:46 pm
Forum: Personal Investments
Topic: Tax efficiency - Running out of room in 401k for bonds
Replies: 8
Views: 889

Re: Tax efficiency - Running out of room in 401k for bonds

If you live in CA, then CA munis in taxable and stocks in tax-deferred may be better than stocks in taxable and taxable bonds in tax-deferred. You might hold half your bond allocation in CA munis, and the other half in your 401(k), so that only half the bonds are in CA. If you do need to put bonds ...
by hap_ca
Sun Mar 03, 2019 8:49 pm
Forum: Personal Investments
Topic: Tax efficiency - Running out of room in 401k for bonds
Replies: 8
Views: 889

Re: Tax efficiency - Running out of room in 401k for bonds

If you live in CA, then CA munis in taxable and stocks in tax-deferred may be better than stocks in taxable and taxable bonds in tax-deferred. You might hold half your bond allocation in CA munis, and the other half in your 401(k), so that only half the bonds are in CA. If you do need to put bonds ...
by hap_ca
Sun Mar 03, 2019 4:28 pm
Forum: Personal Investments
Topic: Tax efficiency - Running out of room in 401k for bonds
Replies: 8
Views: 889

Re: Tax efficiency - Running out of room in 401k for bonds

Yes, I'm in CA and I use Vanguard California Intermediate-Term Tax-Exempt Fund at the moment for a tiered emergency fund / house downpayment. I'm estimating my yearly 401k contributions to be $19,000 and taxable to be ~$80,000. I do try to rebalance with new money as much as possible and have recent...
by hap_ca
Sun Mar 03, 2019 4:09 pm
Forum: Personal Investments
Topic: Tax efficiency - Running out of room in 401k for bonds
Replies: 8
Views: 889

Tax efficiency - Running out of room in 401k for bonds

Hey everyone I've followed the advice on the wiki for tax efficient fund placement here and it's been working out until now. In the past couple of years my income has increased and I've been contributing much more to my taxable relative to my maxed 401k contribution. Going with this trajectory I'll ...
by hap_ca
Wed Feb 27, 2019 2:48 pm
Forum: Personal Investments
Topic: Merrill Edge or Fidelity
Replies: 42
Views: 2651

Re: Merrill Edge or Fidelity

Everything has been moved to Fidelity. They transferred everything in kind with no issues from Fidelity receiving them. ML charged me a $95 transfer fee for each account, and Fidelity reimbursed me for those fees. Everything was in place at Fidelity as of Monday, and I received a call from the loca...
by hap_ca
Wed Feb 27, 2019 2:47 pm
Forum: Personal Investments
Topic: Merrill Edge or Fidelity
Replies: 42
Views: 2651

Re: Merrill Edge or Fidelity

Merrill edge is the overall better package. Free stock trades and because you have over 100k you get a minimum 2.625% cashback on their credit cards, and with the recently refreshed cash rewards card you can get 5.25%. Hi Bling, Can you please let me know which card you see to get the 2.625%. I onl...
by hap_ca
Wed Feb 20, 2019 12:53 am
Forum: Personal Investments
Topic: Customer Service with Vanguard
Replies: 221
Views: 11150

Re: Vanguard Customer Service is Horrible

Not sure I understand all the complaints. You basically get what you pay for. If you want a storefront, handholding, credit card, etc than go with Fidelity. Most bogleheads are frugal, do it yourselfers. Although index fund expenses are almost the same at both companies, Fidelity will pay less for ...
by hap_ca
Wed Feb 20, 2019 12:38 am
Forum: Personal Investments
Topic: Customer Service with Vanguard
Replies: 221
Views: 11150

Re: Vanguard Customer Service is Horrible

Vanguard :D I called for an ETF conversion in my Roth so I could transfer to Merrill Edge. There was no hold time and the rep connected me to the right person immediately. It was done without issues in about 5 minutes and my identity was verified via voice. I've also called once about a 401k rollov...
by hap_ca
Wed Jan 23, 2019 1:10 am
Forum: Personal Investments
Topic: Schwab does not allow specific tax lots to be selected online when selling mutual funds
Replies: 74
Views: 3481

Re: Schwab does not allow specific tax lots to be selected online when selling mutual funds

Does Vanguard have a way to identify specific shares to be sold online for covered shares? Yes. If you previously selected average cost you can change it to spec id. I bought and held funds for a long time and recently switched to spec id without any issues so I could TLH last year. I never sold pr...
by hap_ca
Sat Jan 19, 2019 4:45 pm
Forum: Investing - Theory, News & General
Topic: How much money does one need to setup a private S&P 500 fund?
Replies: 114
Views: 9043

Re: How much money does one need to setup a private S&P 500 fund?

Fidelity Zero Total Market Fund has 0 ER, $0 minimum to invest, and $0 trading fees at Fidelity with $0 account fees. Is that cheap enough?
by hap_ca
Sun Dec 16, 2018 3:51 pm
Forum: Personal Finance (Not Investing)
Topic: Bank of America Merrill Edge Up to $900 Bonus for Preferred Rewards Clients
Replies: 60
Views: 6767

Re: Bank of America Merrill Edge Up to $900 Bonus for Preferred Rewards Clients

How does reinvesting dividends for bond funds like Total Bond Market Index work with Merrill? Can they be automatically reinvested without fees? I have a traditional ira holding VTSAX, VFWAX, VBMFX, VSMAX right now that I’m considering transferring. Do I need to have them converted to ETFs before th...
by hap_ca
Sat Dec 08, 2018 6:07 pm
Forum: Personal Investments
Topic: Which fund for 2nd tier EF?
Replies: 6
Views: 540

Re: Which fund for 2nd tier EF?

Why a fund at all? Mine is US Savings bonds I've been considering I-Bonds as well, but I don't really want to deal with Treasury Direct if I can get something similar from Vanguard or Fidelity. Since I also have a Fidelity account I could do autoroll treasuries. I'd go with VBIRX. It does look pret...
by hap_ca
Sat Dec 08, 2018 5:38 pm
Forum: Personal Investments
Topic: Which fund for 2nd tier EF?
Replies: 6
Views: 540

Which fund for 2nd tier EF?

I'm seeking advice on what funds I should hold for a 2nd tier emergency fund. I am in California and expect to be in the 35% Federal bracket and 10.3% state bracket next year. I'm not a homeowner and do not itemize. For the 1st tier of emergency funds I plan to hold around 3 months in CA muni market...
by hap_ca
Sat Dec 08, 2018 1:55 am
Forum: Investing - Theory, News & General
Topic: What is your allocation to U.S. and International?
Replies: 220
Views: 15480

Re: What is your allocation to U.S. and International?

I think I'm one of the rare Bogleheads here that have a 50/50 split in US/Ex-US. I'll admit the gap in returns for the past 10 years has been pretty painful and I've started to question in recent years whether International will ever make up the deficit.
by hap_ca
Sat Dec 08, 2018 1:36 am
Forum: Personal Investments
Topic: I’m getting frustrated FTIHX
Replies: 21
Views: 3051

Re: I’m getting frustrated FTIHX

Some of us have been feeling the pain of international investment for 10+ years :D
by hap_ca
Tue Nov 20, 2018 2:32 pm
Forum: Personal Investments
Topic: Bear Check-Up
Replies: 15
Views: 2164

Re: Bear Check-Up

The Blackrock fund returned -7.86% in the past 5 years. Vanguard target retirement 2050 is up 25.99% in the same period. Dump the black rock fund
by hap_ca
Tue Nov 20, 2018 2:27 pm
Forum: Personal Investments
Topic: Bear Check-Up
Replies: 15
Views: 2164

Re: Bear Check-Up

That black rock fund looks actively managed? I’d get out of that and shift the 403b to a blend of VFIAX and VIMAX to mirror VTSAX as closely as possible. Roth can go 100% in vanguard total international since the 403 has no good options. It already holds small caps so I’d just get rid of the other t...
by hap_ca
Fri Nov 09, 2018 2:57 pm
Forum: Personal Finance (Not Investing)
Topic: Ally Banking 1% extra back up to $1,000 on new money deposited
Replies: 630
Views: 68214

Re: Ally Banking 1% extra back up to $1,000 on new money deposited

I split my cash into multiple no penalty CDs and was hit with an excessive transaction fee today so keep that in mind. I originally deposited cash into the online savings account, opened the CDs and funded it through the savings. Today I broke the CDs and deposited back to savings, and finally creat...
by hap_ca
Fri Oct 26, 2018 9:41 pm
Forum: Investing - Theory, News & General
Topic: Larry Swedroe: Why International Diversification Works
Replies: 119
Views: 9841

Re: Larry Swedroe: Why International Diversification Works

I hold a 50/50 split but I've been questioning that ratio lately. It's not primarily because of the US outperforming so heavily but because I see a trend of foreign companies choosing to IPO on US markets over their own country's markets. Spotify, a Swedish company, IPOd on US markets instead of Eur...
by hap_ca
Wed Oct 17, 2018 10:14 am
Forum: Personal Finance (Not Investing)
Topic: Ally Banking 1% extra back up to $1,000 on new money deposited
Replies: 630
Views: 68214

Re: Ally Banking 1% extra back up to $1,000 on new money deposited

I signed up for this as a new customer of ally. 1) The terms said deposit by 10/31 and NOT 11/5. Where do you see the 11/5 date? 2) I just confirmed the micro deposits on Vanguard but Vanguards website said it will take an additional 7-10 BUSINESS days. That might be too long if the 10/31 date is th...
by hap_ca
Mon Aug 06, 2018 10:39 pm
Forum: Investing - Theory, News & General
Topic: "Age in Bonds" fails almost everyone
Replies: 217
Views: 15754

Re: "Age in Bonds" fails almost everyone

Also for what it's worth the 10 year return for Vanguard Total Bond Market Index Fund Admiral Shares (VBTLX) is higher than Vanguard FTSE All-World ex-US Index Fund Investor Shares (VFWIX)
by hap_ca
Mon Aug 06, 2018 10:18 pm
Forum: Investing - Theory, News & General
Topic: "Age in Bonds" fails almost everyone
Replies: 217
Views: 15754

Re: "Age in Bonds" fails almost everyone

Is there data available on what glide paths looked like shortly after the 2011 market crash? Have glide paths stayed pretty much the same or have they become more aggressive during the recent long bull market? It seems like the composition of target retirement funds do change, I think international ...
by hap_ca
Mon Aug 06, 2018 9:26 pm
Forum: Investing - Theory, News & General
Topic: "Age in Bonds" fails almost everyone
Replies: 217
Views: 15754

Re: "Age in Bonds" fails almost everyone

I remember during the Great Recession that there were debates on these forums about whether to hold equities at all. Many leading experts said equity returns were forecasted to be 3% or less and holding bonds would give better returns on a risk adjusted basis.

How times have changed.
by hap_ca
Tue Jun 19, 2018 11:37 am
Forum: Investing - Theory, News & General
Topic: Very confused with the current market
Replies: 119
Views: 15067

Re: Very confused with the current market

There's a lot of psychology here. It's easy to say ride it out when your portfolio is mostly from regular monthly/quarterly contributions over the years. But if we ignore tax consequences (e.g. tax deferred accounts), not selling is the same decision as buying. Hence if we flip the scenario around ...
by hap_ca
Sun Jun 17, 2018 10:08 pm
Forum: Personal Investments
Topic: Making taxable account more tax efficient
Replies: 16
Views: 2774

Re: Making taxable account more tax efficient

^ If a fund has more than 50% federal debt, you can deduct a portion from your state return (for example, Vanguard Federal Money Market return). You'd still pay federal income tax on it. In order to deduct a tax-exempt fund's dividends from your state income tax, the fund will have to have more tha...
by hap_ca
Sun Jun 17, 2018 8:49 pm
Forum: Personal Investments
Topic: Making taxable account more tax efficient
Replies: 16
Views: 2774

Re: Making taxable account more tax efficient

If I don't, then someone else will point out that if your taxable account is at least twice the size of your necessary EF, you could hold that in the form of stock funds as well; then if you need to draw on the EF, exchange an equal or equal(tax-adjusted) amount of bonds for stocks in a tax advanta...
by hap_ca
Sun Jun 17, 2018 4:30 pm
Forum: Personal Investments
Topic: Making taxable account more tax efficient
Replies: 16
Views: 2774

Re: Making taxable account more tax efficient

I bought into VMLUX because it was under the tax exempt category for Vanguard and it has no federal taxes due and is partially tax exempt for state based on the percentage of CA bonds it holds. What taxes are due for VSBSX? Is it exempt from state taxes but I have to pay federal? Exactly. Actually ...
by hap_ca
Sun Jun 17, 2018 1:24 am
Forum: Personal Investments
Topic: Making taxable account more tax efficient
Replies: 16
Views: 2774

Re: Making taxable account more tax efficient

If I don't, then someone else will point out that if your taxable account is at least twice the size of your necessary EF, you could hold that in the form of stock funds as well; then if you need to draw on the EF, exchange an equal or equal(tax-adjusted) amount of bonds for stocks in a tax advanta...
by hap_ca
Sat Jun 16, 2018 6:37 pm
Forum: Personal Investments
Topic: Making taxable account more tax efficient
Replies: 16
Views: 2774

Re: Making taxable account more tax efficient

I also currently have an unrealized loss of around $1,800 on my short term bond index. If I sell it can I deduct it against my dividends this year? I'm not planning on selling any stock for gains and I use standard deduction. Better than that (since most of the stock fund dividends will be qualifie...
by hap_ca
Sat Jun 16, 2018 1:53 pm
Forum: Personal Investments
Topic: Making taxable account more tax efficient
Replies: 16
Views: 2774

Making taxable account more tax efficient

I currently hold in my taxable account: CA Intermediate Term Muni (VCADX) Short Term Bond Index (VBIRX) Total Stock Market Index (VTSAX) FTSE All World Ex US (VFWAX) Limited Term Tax Exempt (VMLUX) Tax bracket: State 9.3%, Federal 24%. 401k, Roth maxed yearly. I started with the first 4 funds with a...
by hap_ca
Sat Jun 09, 2018 4:00 pm
Forum: Personal Investments
Topic: Need help with cost basis - SpecID on old holdings
Replies: 0
Views: 226

Need help with cost basis - SpecID on old holdings

I started investing with Vanguard over 15 years ago when I was a poor student and made small monthly contributions and reinvested dividends into VTSMX in a taxable account. I haven't sold any shares since I started investing (always re-balanced with new money) and as a result I've never picked a cos...