Search found 52 matches

by drew
Tue Jan 30, 2018 2:26 pm
Forum: Personal Finance (Not Investing)
Topic: Still working out of greed or fear?
Replies: 46
Views: 5714

Re: Still working out of greed or fear?

It is amusing to note that "market is high" and "market is low" can both be perfectly valid reason to continue working. There are lots of things that can pull both ways. I don't think it's necessarily irrational. It makes sense to me to feel differently if your portfolio supports a 2.5% withdrawal ...
by drew
Thu Jan 18, 2018 1:19 pm
Forum: Investing - Help with Personal Investments
Topic: rebalancing in a taxable account
Replies: 9
Views: 1522

Re: rebalancing in a taxable account

Take a gap year leave or Sabatical leave. Ha, that sounds pretty appealing. :) If you are reinvesting dividends, send the dividends to a bond fund instead. Might help some. We're already doing this. I think ultimately it boils down to deciding how much risk is too much vs. how much it costs to fix....
by drew
Wed Jan 17, 2018 12:13 pm
Forum: Investing - Help with Personal Investments
Topic: rebalancing in a taxable account
Replies: 9
Views: 1522

Re: rebalancing in a taxable account

How is that possible? Is this in reference to our kids' tax rate being higher than ours? My understanding of the tax law update with respect to the kiddie tax law was that children's unearned income between $9151-$12500 is taxed at 35%, and unearned income above $12500 is taxed at 37%. Our marginal...
by drew
Tue Jan 16, 2018 9:30 pm
Forum: Investing - Help with Personal Investments
Topic: rebalancing in a taxable account
Replies: 9
Views: 1522

Re: rebalancing in a taxable account

Already opened the DAF a few weeks back. And we're paying higher taxes for our kids' gains than our own. :(
by drew
Tue Jan 16, 2018 6:38 pm
Forum: Investing - Help with Personal Investments
Topic: rebalancing in a taxable account
Replies: 9
Views: 1522

rebalancing in a taxable account

We have 20% of our investments in tax-sheltered accounts (entirely bonds) and 80% in taxable accounts (70% equities/10% bonds). By directing 100% of new money into bonds and using stock distributions to buy bonds, we have been able to keep near our target 70/30 allocation, and well below our 75/25 b...
by drew
Mon Jan 08, 2018 5:02 pm
Forum: Investing - Help with Personal Investments
Topic: 529 asset allocation
Replies: 14
Views: 1006

Re: 529 asset allocation

Oh, I clearly misunderstood your plan. I had thought that you intended to move $30K to stable value every January to withdraw in December, while keeping the rest at some other asset allocation. So it sounds like you are viewing your 529 as not just fully funded, but over-funded, in that you have $15...
by drew
Mon Jan 08, 2018 4:05 pm
Forum: Investing - Help with Personal Investments
Topic: 529 asset allocation
Replies: 14
Views: 1006

Re: 529 asset allocation

Not trying to hijack the thread but, I have been contemplating this myself. I have 3 children (2nd, 6th and 7th grades) and they all attend private elementary schools. I have been saving in a 529 for college and have around $450k. I consider them funded for state school and was about to stop saving...
by drew
Sat Jan 06, 2018 5:10 pm
Forum: Personal Finance (Not Investing)
Topic: How much are you putting in a 529?
Replies: 111
Views: 10991

Re: How much are you putting in a 529?

Our plan is a work in progress. We intend to have enough in a 529 today to pay for 80-90% of 4 years of state university at $30k/year under the following assumptions: 6% annual portfolio growth (nominal) 3% annual growth in college costs $10k withdrawals per kid at the end of calendar year for priva...
by drew
Thu Jan 04, 2018 3:29 pm
Forum: Investing - Help with Personal Investments
Topic: 529 asset allocation
Replies: 14
Views: 1006

Re: 529 asset allocation

UESP Program Description says: Withdrawing Funds from Accounts with Multiple Underlying Investments: Withdrawals from an account with an investment option containing numerous underlying investments will automatically be taken proportionately from those underlying investments. The account owner/agent...
by drew
Thu Jan 04, 2018 3:27 pm
Forum: Investing - Help with Personal Investments
Topic: 529 asset allocation
Replies: 14
Views: 1006

Re: 529 asset allocation

I seem to recall reading in the Utah 529 plan that withdrawals are made proportionally from underlying funds at the target asset allocation. Is this incorrect or do I remember incorrectly, or perhaps atypical of other plans? It seems that they really try to limit actively changing things very much i...
by drew
Thu Jan 04, 2018 3:11 pm
Forum: Investing - Help with Personal Investments
Topic: 529 asset allocation
Replies: 14
Views: 1006

Re: 529 asset allocation

Thanks, those two suggestions I think end up along the same effective lines with different mental bucketing, and line up with what I'd been considering. An extra twist I was considering was whether it made sense to use cash flow in "bad" years. We are currently paying for grade school out of cash fl...
by drew
Thu Jan 04, 2018 1:55 pm
Forum: Investing - Help with Personal Investments
Topic: 529 asset allocation
Replies: 14
Views: 1006

Re: 529 asset allocation

My longer version of this question here https://www.bogleheads.org/forum/viewtopic.php?f=1&t=236318 didn't get much attention so I figured I'd try a shorter version. The backstory is that the new tax law allows $10K withdrawals per year for private elementary school, so no, not for college expenses,...
by drew
Thu Jan 04, 2018 1:41 pm
Forum: Investing - Help with Personal Investments
Topic: 529 asset allocation
Replies: 14
Views: 1006

529 asset allocation

How would you allocate a $175K 529 account from which you intended to withdraw $10K per year for the next 12 years, and then pay for 4 years of college after that?
by drew
Tue Jan 02, 2018 5:02 pm
Forum: Investing - Help with Personal Investments
Topic: 529 planning for immediate elementary school withdrawals, no state tax benefits
Replies: 3
Views: 607

Re: 529 planning for immediate elementary school withdrawals, no state tax benefits

Thanks for the response, I appreciate it. I don't see why you would superfund I’m considering super funding because it seems the main benefit of the 529 is the tax-free growth, and so the earlier it’s funded the better for the middle school years. Without any state tax benefit, I don’t understand ho...
by drew
Tue Jan 02, 2018 12:01 pm
Forum: Investing - Help with Personal Investments
Topic: 529 planning for immediate elementary school withdrawals, no state tax benefits
Replies: 3
Views: 607

Re: 529 planning for immediate elementary school withdrawals, no state tax benefits

How about this? Could I get some help evaluating these options? Other factors I should consider besides those listed? 1. Vanguard CA Intermediate Muni bonds in a taxable account SEC yield: 2.0% Average duration 5.6 years 2. Vanguard Short Term Investment Grade in Utah 529 SEC yield: 2.39% Average du...
by drew
Sun Dec 31, 2017 2:15 pm
Forum: Investing - Help with Personal Investments
Topic: 529 planning for immediate elementary school withdrawals, no state tax benefits
Replies: 3
Views: 607

529 planning for immediate elementary school withdrawals, no state tax benefits

We have kids in kindergarten and second grade who will likely be in private school at least through 8th grade and very possibly through high school. We currently pay tuition out of cash flow. Their college 529s are fully funded for about four years of public university. We’re in California with no s...
by drew
Sat Dec 30, 2017 1:29 pm
Forum: Investing - Help with Personal Investments
Topic: 529 optimization given new tax law
Replies: 6
Views: 1691

Re: 529 optimization given new tax law

This is (really shockingly) close to our situation so I won’t start another thread now. We mentally consider our 529s to be separate buckets invested in age-based allocations. We’re also considering super funding for our K and 2nd grade kids but are rethinking this mindset. Do you consider the colle...
by drew
Wed Jul 13, 2016 8:22 pm
Forum: Investing - Help with Personal Investments
Topic: Early retirement: We're close, right?
Replies: 3
Views: 1327

Re: Early retirement: We're close, right?

It doesn't move much, a tenth of a percent or two. But our interest rate is 2.625%, FWIW.
by drew
Wed Jul 13, 2016 7:48 pm
Forum: Investing - Help with Personal Investments
Topic: Early retirement: We're close, right?
Replies: 3
Views: 1327

Early retirement: We're close, right?

Hello Bogleheads! I am engaging in the daydream of early retirement and would appreciate any feedback from the fine folks of this site. We are both in our 40s, youngest (and last!) kid 4 years old. I have looked at our expenses over the last couple of years. I've categorized things as follows by loo...
by drew
Fri Aug 28, 2015 1:50 pm
Forum: Personal Finance (Not Investing)
Topic: ISO and the AMT [Incentive Stock Options and Alternative Minimum Tax]
Replies: 6
Views: 799

Re: ISO and the AMT

Thanks for the response. From Fairmark , it sounds like you receive the AMT credit in any year that your AMT is lower than your regular tax, not just in years where you sell the shares. According to that page, I'm out of luck and I was supposed to be claiming an AMT credit every year that I wasn't i...
by drew
Fri Aug 28, 2015 11:34 am
Forum: Personal Finance (Not Investing)
Topic: ISO and the AMT [Incentive Stock Options and Alternative Minimum Tax]
Replies: 6
Views: 799

ISO and the AMT [Incentive Stock Options and Alternative Minimum Tax]

I exercised and held ISO stock options in 2007. The strike price was $7 per share, and the fair market value on the day of exercise was $12 per share. In 2007, I was kicked into AMT by the $5 per share bargain element. I sold these shares this year. This is my understanding from my reading online, b...
by drew
Wed Dec 10, 2014 10:18 pm
Forum: Personal Finance (Not Investing)
Topic: Do you sell RSUs or keep them long term?
Replies: 5
Views: 563

Re: Do you sell RSUs or keep them long term?

I sell them as they vest. I view them as equivalent to wage income and not as an investment and they are taxed as such. The last five years have seen a strong bull market and hindsight is 20/20.
by drew
Wed Dec 10, 2014 5:00 pm
Forum: Investing - Help with Personal Investments
Topic: tax loss / gain harvesting & the kiddie tax
Replies: 3
Views: 901

tax loss / gain harvesting & the kiddie tax

Just when I thought I might have a handle on things, kids and generous grandparents have thrown me for a loop. We have two young children who each have individual UTMA accounts set up by one side of the family and who are also co-beneficiaries of a family trust set up by the other side. The UTMA acc...
by drew
Mon Apr 09, 2012 12:11 pm
Forum: Investing - Help with Personal Investments
Topic: investing in individual munis
Replies: 15
Views: 1395

Re: investing in individual munis

Are you aware there is a potential tax problem in borrowing to invest in tax exempt bonds which may limit or eliminate your deduction for the interest paid? John No, I wasn't aware of this. Thanks for pointing this out. However, my understanding from reading on this topic is that the mortgage inter...
by drew
Sun Apr 08, 2012 3:09 pm
Forum: Investing - Help with Personal Investments
Topic: investing in individual munis
Replies: 15
Views: 1395

Re: investing in individual munis

Thanks for your inputs. re: credit quality. Is there a more specific description of the risks I'd be undertaking going to Baa3/BBB- (the lowest rating that still qualifies as investment grade)? The historical default rate has been substantially under 1% for these, although I understand that this is ...
by drew
Fri Apr 06, 2012 11:00 am
Forum: Investing - Help with Personal Investments
Topic: investing in individual munis
Replies: 15
Views: 1395

investing in individual munis

As per this description of our situation, I'm considering investing in individual zero coupon munis with a portion of our portfolio to achieve a declining duration ending around the time that our 3.25% 7/1 ARM moves to the floating rate portion of the term. From what I'm seeing, Vanguard's Bond Desk...
by drew
Thu Mar 29, 2012 1:12 pm
Forum: Personal Finance (Not Investing)
Topic: another mortgage vs. investing question
Replies: 7
Views: 841

Re: another mortgage vs. investing question

If you owe 50,000 and your mortgage P &I payment is 15,000 yearly then your 50k in assets would need to earn 30% to generate this C/Flow. Was saying it could be a cash flow decision. We're making the P&I payments out of our salaries, not out of the distributions from the bond fund. Anyway, in your ...
by drew
Thu Mar 29, 2012 12:34 pm
Forum: Personal Finance (Not Investing)
Topic: another mortgage vs. investing question
Replies: 7
Views: 841

Re: another mortgage vs. investing question

Thanks for your replies. It seems from the point of view of matching obligations, it makes sense for us to consider the CA long-term fund with an average duration of 6.2 years and an SEC yield of 2.73% with a portion of our assets that could go into a mental bucket towards the home loan. We could sw...
by drew
Wed Mar 28, 2012 7:14 pm
Forum: Personal Finance (Not Investing)
Topic: another mortgage vs. investing question
Replies: 7
Views: 841

another mortgage vs. investing question

We have a 7/1 ARM fixed at 3.25% for six more years. The mortgage balance is about 15% of our investable assets, about 80% of which are held in taxable accounts. Our target asset allocation prior to taking the loan was 70/30, which leaves about 10% of our bonds in taxable accounts in munis. Our marg...
by drew
Wed Jan 06, 2010 6:10 pm
Forum: Personal Finance (Not Investing)
Topic: hold mortgage + taxable investments?
Replies: 10
Views: 2019

Looks like we're getting closer to the heart of my issue, which is that I feel weird about holding bonds in a taxable account while holding a mortgage with a similar after-tax cost, and I also feel weird about dramatically changing our asset allocation. Raddle, your suggestion sounds like a decent c...
by drew
Wed Jan 06, 2010 2:49 pm
Forum: Personal Finance (Not Investing)
Topic: hold mortgage + taxable investments?
Replies: 10
Views: 2019

Thank you for the comments. In reply: We have close to 6 figures in capital losses accumulated already and are in no rush to realize the (smaller) losses on the stocks in question, but I agree those will be the first to go, with the decision being whether to re-buy immediately with the proceeds from...
by drew
Tue Jan 05, 2010 8:16 pm
Forum: Investing - Help with Personal Investments
Topic: 401K Contribution Advice
Replies: 8
Views: 1285

Investing bi-weekly means your money is in the market for a longer period of time than if you save up cash and invest quarterly. If you're assuming the markets will go up over the long run (I hope so since you're investing!), then the more time in the market is a good thing. Why are you considering ...
by drew
Tue Jan 05, 2010 1:17 pm
Forum: Personal Finance (Not Investing)
Topic: hold mortgage + taxable investments?
Replies: 10
Views: 2019

hold mortgage + taxable investments?

I've read the wiki pages and lurked here long enough to get some idea of the arguments. But I'm still not clear about how I should be thinking about this, so I submit the situation to all of you for comments. Let's say I have a portfolio invested 70% stocks/30% bonds. 20% of it is in tax-advantaged ...
by drew
Thu Dec 18, 2008 10:50 am
Forum: Investing - Help with Personal Investments
Topic: buying the distribution
Replies: 1
Views: 569

buying the distribution

TSM lists today, 12/18 as its dividend distribution date. Am I correct in assuming that if I buy today that I'm not buying the distribution?
by drew
Fri Oct 31, 2008 8:13 pm
Forum: Investing - Help with Personal Investments
Topic: tax loss harvest -- take vs. cap gains or income?
Replies: 3
Views: 1075

Thanks to both of you for your comments. Perhaps I can explain in a little bit more detail: target portfolio: 70% stocks, 47% US, 20% international, 3% REIT (yes, I realize this is below where most advise makes a difference, but it is still a somewhat sizeable dollar amount to us) 30% bonds, split b...
by drew
Fri Oct 31, 2008 6:57 pm
Forum: Investing - Help with Personal Investments
Topic: tax loss harvest -- take vs. cap gains or income?
Replies: 3
Views: 1075

tax loss harvest -- take vs. cap gains or income?

My wife and I have an individual stock portfolio of about 20 stocks in a taxable account with substantial capital gains from before we developed a passive index fund based portfolio. Because of those gains and because the stocks are in a somewhat diversified set of industries, we have been reluctant...
by drew
Fri Feb 15, 2008 10:37 pm
Forum: Investing - Help with Personal Investments
Topic: CA tax-exempt funds and TurboTax
Replies: 2
Views: 1121

Just to expand in case anyone else runs across this problem, I imported the 1099-INT from Vanguard. Apparently this import did not run through the full interview section for tax-exempt interest. As TFB suggested, I went back to the "Interest on 1099-INT" section ( not the "Tax-Exempt Interest" secti...
by drew
Fri Feb 15, 2008 6:04 pm
Forum: Investing - Help with Personal Investments
Topic: CA tax-exempt funds and TurboTax
Replies: 2
Views: 1121

CA tax-exempt funds and TurboTax

I hold a couple of CA tax-exempt municipal bond/money market funds and received the 1099-INT forms for them. After entering the information in TurboTax and running the federal review, I'm receiving an error saying that they need a state ID for the state from which the tax-exempt income was received....
by drew
Wed Jan 09, 2008 1:04 pm
Forum: Investing - Theory, News & General
Topic: Poll: What you do when the market goes down?
Replies: 46
Views: 11008

livesoft wrote:Hmmm, I had intended that rebalancing was part of one's normal investing activities and not other. :?
Uh oh, I think "Buy more if I can" also sounds like re-balancing.
by drew
Mon Jan 07, 2008 10:33 am
Forum: Investing - Theory, News & General
Topic: Looking for a New Mutual Fund at Fidelity
Replies: 3
Views: 1186

nugbuster, I posted the following in response to one of your other post questions, but you may have missed it. In answer to this question, the Spartan index funds are great options *as appropriate parts of a diversified portfolio.* I've noticed a couple of your recent posts -- along with this one (i...
by drew
Fri Jan 04, 2008 5:43 pm
Forum: Investing - Theory, News & General
Topic: Is Timber a Good Investment<?>
Replies: 22
Views: 5256

Re: Is Timber a Good Investment<?>

Is it worth it to invest in timber at this time; and if so what is the best way to go about it? Hi, I've noticed a couple of your recent posts -- along with this one, one on timing of investing in financials, and screening techniques for ETF purchases. Many have tried to answer your questions in th...
by drew
Thu Dec 20, 2007 5:24 pm
Forum: Investing - Help with Personal Investments
Topic: Flagship
Replies: 10
Views: 3109

We use the Vanguard Advantage account for a small checking account. I believe there are some fees for non-Flagship investors. Some people express security concerns about having checking attached to an account with a substantial amount, so we have a small separate account for this. The primary benefi...
by drew
Wed Oct 31, 2007 11:29 am
Forum: Investing - Theory, News & General
Topic: Managed Funds Beat the Index Funds
Replies: 27
Views: 6570

LOL! Did you notice that the best performing stock funds show 5-year performance and are compared against the 10-year performance of the indexes? The first 5 years of those 10 included the harsh bear market, while the most recent 5 years have seen a healthy run up across the board. That's the most b...
by drew
Fri Aug 10, 2007 3:51 pm
Forum: Investing - Help with Personal Investments
Topic: somewhat OT: home equity loan forced on parents?
Replies: 10
Views: 2929

They are elderly, but they are still thankfully quite sharp. They do not intend to bank any more at this place; regarding the suggestion to go to the manager, it's also interesting that the most recent call was from the manager. I, too, wonder if this qualifies as predatory lending and what, if any,...
by drew
Fri Aug 10, 2007 3:31 pm
Forum: Investing - Help with Personal Investments
Topic: somewhat OT: home equity loan forced on parents?
Replies: 10
Views: 2929

somewhat OT: home equity loan forced on parents?

My parents went to a bank to make a deposit for a CD recently. While they were there, the employee asked if they were interested in getting a home equity loan with them. (I'm actually not completely clear if it was a loan or a line of credit) My parents were not interested, but the employee was quit...
by drew
Tue Jun 05, 2007 9:16 am
Forum: Investing - Help with Personal Investments
Topic: Tax-loss harvest Muni bond fund: No? Yes? If yes, how best?
Replies: 3
Views: 2010

Hi Ted,

You may find some instructive comments on this thread.

Andrew
by drew
Sun May 27, 2007 2:40 pm
Forum: Investing - Theory, News & General
Topic: David Swensen's Unconventional Success and Bond investing
Replies: 20
Views: 6536

gkaplan wrote: (And how about that symbol underneath the tilde symbol? What's that used for?)
I think you can use it as an opening single quote mark, but I know it's used in the Verilog hardware programming language for certain directives.
by drew
Tue Mar 27, 2007 5:03 pm
Forum: Investing - Help with Personal Investments
Topic: estate planning / life insurance resources
Replies: 19
Views: 6452

Re: drew

Can you specify what the product is? For example, is it permanent life insurance, and if so, what type? Is it an annuity? If you can't answer this question, you're not ready to make a decision. I can't, and I'm not. I realize this. All I know of the product so far is that it would cost them on the ...