Search found 6021 matches

by iceport
Mon Mar 18, 2024 3:40 pm
Forum: Personal Investments
Topic: Questions on Wash Sale?
Replies: 68
Views: 3639

Re: Questions on Wash Sale?

As for me, I agree wholeheartedly with rkhusky: The correct answer is so obvious that even Kaye Thomas — who takes such great care to make confusing circumstances clear even for wash sale novices — didn't think the case warranted any explanation. Where does he opine on OP's scenario? He doesn't. That's my point. If he thought it warranted an explanation, I assume he would have provided another example or discussed the variation in one of the five examples he did provide. Frankly, it's not a close call. Did you check out the link to that other forum? Notice any familiar explanations? Ah, got it. I don't read that much into a particular case not being included. (Though I could argue that it could also not be included because it's complicated...
by iceport
Sun Mar 17, 2024 7:15 pm
Forum: Personal Investments
Topic: Questions on Wash Sale?
Replies: 68
Views: 3639

Re: Questions on Wash Sale?

AnEngineer wrote: Sun Mar 17, 2024 7:02 pm
iceport wrote: Sun Mar 17, 2024 4:38 pm As for me, I agree wholeheartedly with rkhusky: The correct answer is so obvious that even Kaye Thomas — who takes such great care to make confusing circumstances clear even for wash sale novices — didn't think the case warranted any explanation.
Where does he opine on OP's scenario?
He doesn't. That's my point. If he thought it warranted an explanation, I assume he would have provided another example or discussed the variation in one of the five examples he did provide. Frankly, it's not a close call.

Did you check out the link to that other forum? Notice any familiar explanations?
by iceport
Sun Mar 17, 2024 4:38 pm
Forum: Personal Investments
Topic: Questions on Wash Sale?
Replies: 68
Views: 3639

Re: Questions on Wash Sale?

That raises an issue of whether shares whose basis can be adjusted due to a wash sale includes shares that were acquired in the wash sale window but were sold before a sale for a loss. Yes, that is a key question. The answer seems blatantly obvious to me, but there are, apparently, different ways of looking at it. Your wording led me to try a new search for any available guidance there might be out there, and I found an interesting thread: How do wash sales work when the acquisition of substantially similar stock is done *before* the sale? I know nothing about that forum, but out of 4 replies, 3 get it right, and the fourth says that while they think there is a wash sale, technically, their broker doesn't report them as wash sales. As for ...
by iceport
Sun Mar 17, 2024 4:10 am
Forum: Personal Investments
Topic: Questions on Wash Sale?
Replies: 68
Views: 3639

Re: Questions on Wash Sale?

AnEngineer, you seem to be the only person in this thread who interprets the law the way you do. Are there others who have expressed that thought in the past? Have you found any opinions from lawyers or the government or any other authority that support your thinking? Or is it just your thinking? I don't mean that in the snide way it might sound in print. I'm interested in whether you came to this conclusion on your own by your reading of the law, or if there are some authorities out there that you may have learned this thinking from. To expand on my earlier answer, I found the following documents expressing doubt in interpreting the wash sale rule in such contexts when looking for the proper text of RR 56-602. KayeThomas_CostBasisRegsComm...
by iceport
Sat Mar 16, 2024 11:00 am
Forum: Personal Investments
Topic: Questions on Wash Sale?
Replies: 68
Views: 3639

Re: Questions on Wash Sale?

There is Revenue Ruling 56-602 . The ruling is that selling a portion of a purchase lot for a loss within 30 days of the purchase is not a wash sale. This is specifically about whether the other shares in that lot cause a wash sale. It says nothing about a wash sale being caused by a separate purchase. But if you read the reasoning behind the ruling, the IRS does not just rely on the text of the law, but also on Congressional intent, as revealed through discussions and reports. You're exactly correct, of course. Obviously, the court rulings turn back to the law's intent when interpreting the law. As do all the serious analyses of the law I've ever read. Kaye Thomas' explanations are rife with references to the law's intent. How on earth so...
by iceport
Sat Mar 16, 2024 3:17 am
Forum: Personal Investments
Topic: Questions on Wash Sale?
Replies: 68
Views: 3639

Re: Questions on Wash Sale?

Hi, I read some notes on wash sale. I still confused about the determinatiion of the wash sale. Even all ChatGPT, Gemini gave different answers, can anyone share your knowledge on this? Here is a case I'm confused. 1. On March 3, 2021, you purchased 100 shares at $30 per share. 2. Two weeks later (approximately March 17, 2021), you sold all 100 shares at $31 per share, realizing a gain. 3. 5 days after the sale (approximately March 22, 2021), you repurchased 200 shares at $32 per share. 4. 7 days after the purchase (approximately March 29, 2021), you sold the 200 shares at $28 per share, realizing a loss. 5. on March 30, I don't have any stock as I sold all those on March 29. Can I claim the loss or duct losses from sales for tax loss purp...
by iceport
Thu Mar 14, 2024 6:09 pm
Forum: Personal Investments
Topic: Planning for a Pension with no COLA
Replies: 9
Views: 748

Re: Planning for a Pension with no COLA

My husband will qualify at age 57 for a pension equalling 55% of his current salary after Med/SS payroll tax, but with no COLA, and I’m unsure how best to plan for the effect of inflation over time. We’re 57 & 52, both planning to file for SS at 70, and our benefits plus pension will equal 109% of our current salaries after PR tax and retirement contributions—in today’s dollars. We want to retire as soon as we can and I’m wondering how to calculate the additional retirement savings we need to compensate for the dwindling value of his pension. Any suggestions? There's no perfect deterministic or stochastic solution of this problem, but a fairly easy way to get a rough handle on the effect inflation will have you could model it over at h...
by iceport
Thu Mar 14, 2024 5:22 pm
Forum: Personal Investments
Topic: Questions on Wash Sale?
Replies: 68
Views: 3639

Re: Questions on Wash Sale?

Nate79 wrote: Thu Mar 14, 2024 5:17 pm The wash sales are irrelevant. You sold the shares that had their basis adjusted by the wash sales. The broker should track all of this.

Aka irrelevant wash sale
It's difficult for me to see how any shares could have their cost bases adjusted in this case. There simply aren't any shares left!

Some algorithm would need to tie itself into knots to find any replacement shares in this example.
by iceport
Thu Mar 14, 2024 4:56 pm
Forum: Personal Investments
Topic: Questions on Wash Sale?
Replies: 68
Views: 3639

Re: Questions on Wash Sale?

Can I claim the loss or duct losses from sales for tax loss purposes? Yes. :thumbsup There's no wash sale, so you will be able to claim the loss — as long as you didn't buy anything substantially identical within 30 days after the last sale. Steps 1 and 2 are irrelevant, because there can be no wash sale without a loss. The loss realized in Step 4 is not a wash sale, because you sold the very same shares bought within the wash sale period, so they cannot be replacement shares. With no replacement shares, there can be no wash sale. I can't recommend this series of short articles on wash sales published at Fairmark.com highly enough. They are the clearest, most concise explanations I've ever come across. The first 5 of these short article sh...
by iceport
Wed Mar 13, 2024 1:07 pm
Forum: Personal Finance (Not Investing)
Topic: How Much Cash Do You Keep In Your Home?
Replies: 207
Views: 14914

Re: How Much Cash Do You Keep In Your Home?

It's come in handy over the years because when a bigger than normal expense comes up, I can use my envelope money and not feel it at all in any of my other accounts. Now, the amount in my envelope has reached $3,700.00 and I'm starting to think that I should invest this money in my VTSAX fund so it can earn interest. I'd love to know your thoughts and how much, if any, money do you keep at home other than money in your wallet. I won't answer the question of how much to keep, because I believe that a certain amount of cash is important to give many of us peace of mind, but that the amount is different for each one of us. My thoughts are focused on the alternative you identified, to invest the cash in the US equity market instead. That seems...
by iceport
Mon Mar 11, 2024 11:55 am
Forum: Personal Consumer Issues
Topic: What are you listening to now
Replies: 5802
Views: 575100

Re: What are you listening to now

So this past weekend I spun one of my favorite Jerry Garcia solo albums, his collection of covers called "Compliments," and courtesy of the YouTube suggestions stumbled upon two truly remarkable interviews he granted. I've been a fan of Garcia's music about as long as I can remember, and I had done some reading on him many years ago through books and interviews. However, I think I learned more about what Jerry was like as a person in the little over 30 minutes the combined clips clock in at than in all other reading I've ever done on Garcia combined. Both interviews offer an unguarded glimpse into Garcia's personality. He was such a low-key, unassuming character. The longer interview has its cringe-worthy moments, for me, but it's...
by iceport
Mon Mar 11, 2024 11:29 am
Forum: Personal Consumer Issues
Topic: What are you listening to now
Replies: 5802
Views: 575100

Re: What are you listening to now

JAZZISCOOL wrote: Sat Mar 09, 2024 10:53 am
iceport wrote: Thu Mar 07, 2024 3:47 pm Not my usual kind of selection, but her voice is so appealing, and the song fits the season...

Waters of March (Live) · Stacey Kent
Nice! I enjoyed her version of Corcovado. "Quiet Nights of Quiet Stars" on this album. The sax player reminds me a lot of Stan Getz (who played on a number of Brazilian jazz albums, as I recall.) :beer

https://www.youtube.com/watch?v=bxSudoI ... 4&index=10
Yes, that's nice. Very soothing. There's an intimacy to Kent's vocals. Wikipedia says the sax player is married to Stacey Kent. They quite literally make beautiful music together! 8-) :wink:
by iceport
Mon Mar 11, 2024 6:23 am
Forum: Investing - Theory, News & General
Topic: William Bernstein On the Financial Industry
Replies: 81
Views: 9780

Re: William Bernstein On the Financial Industry

"People do not seek employment in investment banks, brokerage houses, and mutual fund companies with the same motivations as those who choose to work in fire departments or elementary schools. Whether investors know it or not, they are engaged in an ongoing zero-sum, life-and-death struggle with piranhas, and if rigorous precautions are not taken, the financial services industry will strip investors of their wealth faster than they can say 'Bernie Madoff'". -- William Bernstein Actionable information: Use index funds only and keep costs low. Avoid the piranhas. I'm guessing Dr Bernstein never worked at an investment bank, brokerage house, or mutual fund. The reality is that the majority of people working in these institutions wor...
by iceport
Fri Mar 08, 2024 8:12 am
Forum: Investing - Theory, News & General
Topic: When do you tax-loss harvest?
Replies: 15
Views: 1500

Re: When do you tax-loss harvest?

By far the easiest TLH pair I've used is Vanguard Short-Term Corporate Bond Index Fund (VSCSX) and Vanguard Short-Term Investment-Grade Fund (VFSUX). They're practically substantially identical, but technically only one is an index fund. Since there are so many varieties of muni bonds, I would be surprised if any two muni bond funds would be substantially identical. These are taxable. I don't really question their legal status as being not substantially identical, but when I compare their portfolios, I do feel a little guilty about being able to TLH with this nearly indistinguishable pair... Have you looked under the hood to see how close it is? Close performance doesn’t count. I had looked years ago, but they didn't look quite as indistin...
by iceport
Thu Mar 07, 2024 3:47 pm
Forum: Personal Consumer Issues
Topic: What are you listening to now
Replies: 5802
Views: 575100

Re: What are you listening to now

Not my usual kind of selection, but her voice is so appealing, and the song fits the season...

Waters of March (Live) · Stacey Kent

Image
by iceport
Thu Mar 07, 2024 3:29 pm
Forum: Investing - Theory, News & General
Topic: When do you tax-loss harvest?
Replies: 15
Views: 1500

Re: When do you tax-loss harvest?

rkhusky wrote: Thu Mar 07, 2024 11:31 am
iceport wrote: Thu Mar 07, 2024 8:56 am By far the easiest TLH pair I've used is Vanguard Short-Term Corporate Bond Index Fund (VSCSX) and Vanguard Short-Term Investment-Grade Fund (VFSUX). They're practically substantially identical, but technically only one is an index fund.
Since there are so many varieties of muni bonds, I would be surprised if any two muni bond funds would be substantially identical.
These are taxable. I don't really question their legal status as being not substantially identical, but when I compare their portfolios, I do feel a little guilty about being able to TLH with this nearly indistinguishable pair...
by iceport
Thu Mar 07, 2024 9:56 am
Forum: Investing - Theory, News & General
Topic: Age 60+ AND retired? What's your asset allocation? What type of bonds/Fixed Inc instruments do you use?
Replies: 57
Views: 8511

Re: Age 60+ AND retired? What's your asset allocation? What type of bonds/Fixed Inc instruments do you use?

What are your / spouse age(s) and what is your target stock/bond asset allocation? 62; retired at 55; 56% equity/44% fixed income What types of instruments do you hold within your bond allocation and why? (eg. bond funds, TIPs, treasuries, MYGA, etc) For each type of instrument, what % does it make up of your bond allocation? (such that their total % should be 100) In round numbers: 27% Vanguard Total Bond Market Index (VBTIX) 18% Vanguard Inflation-Protected Securities (VIPIX) 55% Cash-like fixed income: stable value fund/money market fund/short term bond fund, as market conditions fluctuate I never wanted to use any complicated strategies for my fixed income, like bond ladders or liability matching. So while working I used the naive dive...
by iceport
Thu Mar 07, 2024 8:56 am
Forum: Investing - Theory, News & General
Topic: When do you tax-loss harvest?
Replies: 15
Views: 1500

Re: When do you tax-loss harvest?

I'm curious about when people decide to tax-loss harvest. I'm contemplating my own plans should we have a market downturns this year. Do you wait until you have a $3000 loss? Less? Or even more, if you are carrying it over? It really all depends. I have no hard and fast rules. The size of the loss is a factor, but so is the hassle of the strategy to harvest a particular loss if I prefer the fund I own over any replacement fund. Sometimes I sell in taxable and buy in tax-advantaged, then do the reverse after 30 days to restore my preferred taxable holding. I probably wouldn't do that for less than at least a few thousand dollars. By far the easiest TLH pair I've used is Vanguard Short-Term Corporate Bond Index Fund (VSCSX) and Vanguard Shor...
by iceport
Wed Mar 06, 2024 1:58 pm
Forum: Personal Consumer Issues
Topic: When to switch from dealer to independent for service
Replies: 52
Views: 4113

Re: When to switch from dealer to independent for service

Lots of focus on cost, and I get that. But when it comes to cars, I've always approached maintenance from a long-term perspective. I have absolutely no problem paying *more* for work at a high quality independent garage.

What I absolutely hate is having work done that isn't needed. A good, trustworthy mechanic won't do that.
by iceport
Wed Mar 06, 2024 1:55 pm
Forum: Personal Finance (Not Investing)
Topic: Foreign tax paid and H&R Block software
Replies: 6
Views: 1179

Re: Foreign tax paid and H&R Block software

rtt22 wrote: Tue Mar 05, 2024 8:11 pm Now, the final number is the same on TurboTax and H&R Block. Phew!
Awesome! Thanks for reporting back! :thumbsup
by iceport
Wed Mar 06, 2024 1:53 pm
Forum: Personal Finance (Not Investing)
Topic: tax filing using PDF
Replies: 22
Views: 1423

Re: tax filing using PDF

zie wrote: Wed Mar 06, 2024 1:45 pm The USPS has armed law enforcement whose job it is to keep the mail safe and sound. They are well aware of the IRS and the importance of tax returns. So I'm not very worried about safety, just the delay.
Same here. I do make a point to drop the returns off *inside* the post office, though.
by iceport
Wed Mar 06, 2024 1:51 pm
Forum: Personal Finance (Not Investing)
Topic: tax filing using PDF
Replies: 22
Views: 1423

Re: tax filing using PDF

3. If no, what's the correct way to file tax with these PDF? As noted above, print and mail them. That's what I've done since the day I stopped receiving IRS forms in the mail and filed using pen and ink on paper. Zie is correct, you cannot email to the IRS, you must use the postal service. Now, do you trust the post office to deliver, and do you trust the IRS to open the mail in a timely manner? No way I would file by mail unless there was no e-file option. Now, on the other hand, do you trust third parties with some of your most sensitive personal data? I certainly don't. I'm amazed how little thought most folks seem to give to how their data is being collected, used and, hopefully — fingers crossed — kept safe. There's no way I would vo...
by iceport
Tue Mar 05, 2024 5:55 pm
Forum: Personal Consumer Issues
Topic: When to switch from dealer to independent for service
Replies: 52
Views: 4113

Re: When to switch from dealer to independent for service

There appears to be a lot of hate or dislike for dealership service departments. I use the dealership and they appear to have done well by my cars. My cars have run well. I wouldn’t know how to evaluate an independent shop. I'm guilty of that. I am not a mechanic but know enough as a DIY'er to see when a mechanic completely blows it. Just from memory: Car had a hard metal ticking noise. Periodic on/off for a while then on. Dealer said it was a loose caliper bolt. Drove it and noise still there. I diagnosed further. It was an unsecured pinion pin in the rear end and the pin was clacking back and fourth. Car in for "service". Tire rotation of directional snow tires, 2 tires faced forward after rotation, 2 faced back. Car in for &qu...
by iceport
Tue Mar 05, 2024 5:25 pm
Forum: Personal Consumer Issues
Topic: When to switch from dealer to independent for service
Replies: 52
Views: 4113

Re: When to switch from dealer to independent for service

There appears to be a lot of hate or dislike for dealership service departments. I use the dealership and they appear to have done well by my cars. My cars have run well. I wouldn’t know how to evaluate an independent shop. There is a certain amount of knowledge about cars required. The very same reason why you wouldn't know how to rate an independent shop surely hinders your ability to rate your dealership experiences critically. I sure hope their work has always been good, that they haven't charged you for work that wasn't needed (or that they didn't do at all!), and that they offered the most economical options for repairs. But if you don't know the exact nature of the work they're doing, don't ask to see the used parts if applicable an...
by iceport
Tue Mar 05, 2024 4:59 pm
Forum: Personal Consumer Issues
Topic: What to do?? [Vanguard warning about closing account for calling too frequently]
Replies: 74
Views: 6820

Re: What to do?? [Vanguard warning about closing account for calling too frequently]

My guess is may be called 15 times during August when I have to transfer out of mutual fund platform to brokerage platform. During December to to RMD may be called 15 times and lately tying to transfer my other IRA to V may be 10 times. During other times not needed to call them. I posted again today on my online account asking to let me know about their - Call policy - but have not gotten any replies. Holy cow! That sure seems like a whole heckuva lot of calls. However, I only have my own experience to compare this to. I've been a Vanguard customer for 19 years now, I've got 3 accounts — taxable, Roth IRA and Rollover IRA — I've done tax-loss harvesting that required written correspondence to get around an older frequent trading restricti...
by iceport
Tue Mar 05, 2024 8:47 am
Forum: Personal Consumer Issues
Topic: What are you listening to now
Replies: 5802
Views: 575100

Re: What are you listening to now

JAZZISCOOL wrote: Mon Mar 04, 2024 6:33 pm Tommy Emmanuel, an acoustic guitar player, is excellent! Billy Strings (bluegrass guitar phenom) mentioned him on an interview I saw. I believe he is Australian.

Playing "Classical Gas" here:

https://www.youtube.com/watch?v=S33tWZqXhnk

On Sat., I enjoyed the Philadelphia Blues Show on WXPN. :beer
Huh!!! Never heard of this guy before — thanks! He made a record with the Dawg on Acoustic Disc that I hadn't seen before. Here it is on YouTube, only because it's on Emmanuel's channel. (Grisman keeps almost all his stuff under lock and key.)

Tommy Emmanuel, David Grisman - Pickin' - 2017

More stuff to explore! :beer
by iceport
Tue Mar 05, 2024 7:45 am
Forum: Personal Finance (Not Investing)
Topic: Bank bill pay: takes a week and only sends paper checks?
Replies: 14
Views: 1325

Re: Bank bill pay: takes a week and only sends paper checks?

Does this almost week long time between processing and due date mean that my current bank is sending a paper check? I know for a fact a few of these billers accept ACH because I did it at a previous mega-bank and everything happened within two days. Yes, that probably means there will be a paper check sent through the mail, unfortunately. I can understand the checks for something like my mom-and-pop heating oil company. But some payees get paper checks even if they do accept ACH payments. It seems to depend upon the specific bill paying service being used. At my credit union I was once able to make ACH transfers to a sibling's account at another credit union. Then my credit union changed bill paying service providers, and those ACH transfe...
by iceport
Tue Mar 05, 2024 7:13 am
Forum: Personal Consumer Issues
Topic: When to switch from dealer to independent for service
Replies: 52
Views: 4113

Re: When to switch from dealer to independent for service

whodidntante wrote: Tue Mar 05, 2024 7:06 am The service department is the primary profit center for a dealership. Warranties, paint protection, gap insurance, financing, VIN etching etc. make up a lot of the rest. Selling cars is just a side business for a dealership.
Exactly so!

I've only been to the dealer for two recalls in the 16 years since I bought the car new. Never once have I had any other work done there. I still feel just the slightest twinge of guilt when I go in to buy parts. When I bought the car, the sales manager asked if I planned to have the service done at the dealer...


...and I lied. :shock:
by iceport
Tue Mar 05, 2024 7:05 am
Forum: Investing - Theory, News & General
Topic: Vanguard Announces CEO Retirement and Appointment of President
Replies: 371
Views: 34743

Re: Vanguard Announces CEO Retirement and Appointment of President

Don't know if this article has been posted here already: Tim Buckley’s Exit Exposes Vanguard Wounds Rick offers some colorful remarks in the piece. Rick Ferri, founder of Ferri Investment Solutions and a longtime subscriber to the Vanguard style of low-cost passive investing, views Buckley’s eventual departure as progress. “My initial thought was, good,” he said. “Tim was very Ivy League and he kind of turned people the wrong way, and I don’t think he was very forthcoming on a lot of problems Vanguard was having.” Ferri is a past president and current member of The John C. Bogle Center for Financial Literacy, a non-profit organization established in 2010 with the support of John Bogle, who died in 2019. Members of the worldwide organization...
by iceport
Tue Mar 05, 2024 6:52 am
Forum: Personal Consumer Issues
Topic: When to switch from dealer to independent for service
Replies: 52
Views: 4113

Re: When to switch from dealer to independent for service

There is an independent place that specializes in euro brands, I've used them for actual repairs with my bmw and they did good work. I''d trust them to do the Audi maintenance items, only hesitation is that the audi has only gone to dealer up to this point. I looked up factory warranty and it was only 4 years so it's been expired, seems like the time to switch it to the independent place is now unless anyone can think of a reason not to? Thanks for reading I can't think of a reason not to switch, as long as you have a *truly* trusted independent mechanic. Those are worth their weight in gold. I have an extremely strong preference for independent garages that do high quality work over *any* dealer. Theoretically, work done at dealers should...
by iceport
Tue Mar 05, 2024 6:23 am
Forum: Personal Finance (Not Investing)
Topic: Foreign tax paid and H&R Block software
Replies: 6
Views: 1179

Re: Foreign tax paid and H&R Block software

This valuable resource from The Finance Buff might be of some help to you:

How to Enter 2023 Foreign Tax Credit Form 1116 in H&R Block
by iceport
Mon Mar 04, 2024 1:38 pm
Forum: Investing - Theory, News & General
Topic: What good is tax deferred?
Replies: 122
Views: 15325

Re: What good is tax deferred?

...Retirement accounts should always be maximized before one considers investing in a taxable account. Always is a powerful word that should be used very cautiously, but I'm in general agreement that there is little reason to save for retirement in a taxable account before all of your tax-deferred and Roth options have been maxed out... (emphasis added) Agreed, but the addition you made of "to save for retirement" is an important one doing a lot of work in that sentence, a caveat the previous poster didn't make. Beyond fear of the 59 1/2 rule, one might not be sure of what else they may want to do with some of their savings down the road (invest in a business, buy a second home, etc.). So after maxing out matches, one MIGHT want ...
by iceport
Sun Mar 03, 2024 8:17 pm
Forum: Personal Consumer Issues
Topic: What are you listening to now
Replies: 5802
Views: 575100

Re: What are you listening to now

I just love this guy's music! Something soothing and uplifting about it, in spite of — or maybe because of — its unflinching honesty. Dave McMurray's sax playing is a delight, too. Robert Bradley - Down in the Bend - 2017 https://i.ytimg.com/vi/7lKlvOD3K8A/hqdefault.jpg?sqp=-oaymwEcCNACELwBSFXyq4qpAw4IARUAAIhCGAFwAcABBg==&rs=AOn4CLAoUyiv8CAGbGKndsM2sq9z4p5n7Q Album info: https://funkydrecords.bandcamp.com/album/down-in-the-bend Robert returned to Detroit in late 2016 to visit his family, and looking to see if there was still any interest in his music. Several people advised him to call Detroit producer Tino Gross. ‘My phone rang one evening and it was Robert Bradley’ said Tino. ‘He said he was interested in maybe getting together and do...
by iceport
Sun Mar 03, 2024 2:49 pm
Forum: Investing - Theory, News & General
Topic: What good is tax deferred?
Replies: 122
Views: 15325

Re: What good is tax deferred?

There have been a number of posts here lately regarding the advisability of retirement accounts (i.e., 401[k]s, IRAs). I wonder how/why this misunderstanding is arising. Retirement accounts should always be maximized before one considers investing in a taxable account. Always is a powerful word that should be used very cautiously, but I'm in general agreement that there is little reason to save for retirement in a taxable account before all of your tax-deferred and Roth options have been maxed out. Fear of the age 55/59 1/2 rule is a reason many cite to invest preferentially in taxable but I find that argument less than compelling given all of the exceptions and additional benefits of retirement accounts. Yeah, me too. I thought maxing out...
by iceport
Sun Mar 03, 2024 2:37 pm
Forum: Investing - Theory, News & General
Topic: What are you up YTD? [Year To Date]
Replies: 5249
Views: 900172

Re: What are you up YTD? [Year To Date]

Oh, YTD I'm up 2.67%, no contributions or withdrawals, ~62-64% equity. But what's more significant to me, psychologically, is finally matching and beating my previous weekend balance high of November 6, 2021. Time spent significantly below the prior peak has seemed to drag on forever. And that's only been 2 years and 4 months! Human perception of time is a curious thing... I'm 65:35 equity:bonds and also finally nominally above 12/31/2021 high. But in real terms, still 10% down. This is after accounting for contributions and withdrawals. Between markets and inflation, 2022 was financially a very bad year, down around 28% at one point. Oh, man!! That inflation reminder is a real bummer! Forgot about that as I was anchoring on the previous p...
by iceport
Sun Mar 03, 2024 8:06 am
Forum: Investing - Theory, News & General
Topic: What are you up YTD? [Year To Date]
Replies: 5249
Views: 900172

Re: What are you up YTD? [Year To Date]

Oh, YTD I'm up 2.67%, no contributions or withdrawals, ~62-64% equity. But what's more significant to me, psychologically, is finally matching and beating my previous weekend balance high of November 6, 2021. Time spent significantly below the prior peak has seemed to drag on forever. And that's only been 2 years and 4 months! Human perception of time is a curious thing... What's also interesting is that, excluding a significant stable value-turned-money market position, the only position (of nine others) with a meaningful gain during the long portfolio dip is the total US market index fund. The total bond market did about as poorly as emerging markets. Real estate performed poorly in general, but international real estate lost nearly a qua...
by iceport
Fri Mar 01, 2024 4:55 pm
Forum: Investing - Theory, News & General
Topic: What good is tax deferred?
Replies: 122
Views: 15325

Re: What good is tax deferred?

The growth gets taxed too. Any benefit is completely due to the tax rate coming out being less than when it went in. Incorrect. You'll get (the equivalent of) tax-free growth as the original poster said. Please read https://www.bogleheads.org/wiki/Traditional_versus_Roth and run the numbers. I don't understand what you and iceport are describing here. When you withdraw from a traditional IRA/401k, you have to pay tax on the full amount you withdraw, both on the principal and the returns. The "growth" is taxed at your marginal rate when you withdraw it, as far as I have understood. What do you mean by tax-free growth exactly? As far as I know, only a Roth offers free withdrawals (which is what I would call tax-free growth). Well, ...
by iceport
Thu Feb 29, 2024 5:58 pm
Forum: Investing - Theory, News & General
Topic: What good is tax deferred?
Replies: 122
Views: 15325

Re: What good is tax deferred?

RyeBourbon wrote: Thu Feb 29, 2024 5:46 pm
iceport wrote: Thu Feb 29, 2024 3:59 pm you'll get (the equivalent of) tax-free growth.
Any benefit is completely due to the tax rate coming out being less than when it went in.
That's false.

Traditional versus Roth/Calculations

Given a (theoretically) constant tax rate, you get the equivalent of a Roth tax break, which is, quite obviously, tax-free growth.

If the withdrawal tax rate is lower, then that only adds to the benefit — in other words, even *better* than a Roth tax break.
by iceport
Thu Feb 29, 2024 3:59 pm
Forum: Investing - Theory, News & General
Topic: What good is tax deferred?
Replies: 122
Views: 15325

Re: What good is tax deferred?

I am retiring later this year. I'll be 64. Like many of my peers, I dutifully saved for retirement using traditional (tax deferred) IRA and 401K. In recent years, I have (strategically) converted a fair amount to Roths. Because debts are paid off, I have also accumulated a good amount in taxable (which I now realize can be tax managed). So, after learning about asset location and tax strategies, it got me wondering... what is the value of tax deferred compared to Roth and taxable? About the only things I can think of - is having enough tax deferred saved to withdrawal a yearly amount equal to the tax deduction and kicking the tax can down the road if current taxes are high. I'd like to have a better understanding, so I can tell my 30-somet...
by iceport
Wed Feb 28, 2024 8:37 pm
Forum: Personal Consumer Issues
Topic: What are you listening to now
Replies: 5802
Views: 575100

Re: What are you listening to now

kleiner wrote: Mon Feb 26, 2024 6:35 pm I discovered the magic of Fela Kuti recently and have been obsessively listening to all of his music but I really like the album "Teacher don't teach me nonsense"
Very interesting stuff! I had never heard anything quite like it. Seems like he built up a huge catalog of material.
by iceport
Wed Feb 28, 2024 8:29 pm
Forum: Investing - Theory, News & General
Topic: What good is tax deferred?
Replies: 122
Views: 15325

Re: What good is tax deferred?

I'd like to have a better understanding, so I can tell my 30-something children how much tax deferred to have. Is there a rule of thumb for young people? The very best thing you could *possibly* do, for the benefit of all of you, is to study — until you understand — the deceptively simple algebra under the "simplest situation" heading of the "calculations" section of the wiki article linked below. (It might be easiest if you assume some numbers and run them through both equations.) Traditional versus Roth/Calculations If the marginal tax rate now (the "contribution tax rate") is higher than the marginal tax rate later (the "withdrawal tax rate"), then the traditional account is better; if it is lower...
by iceport
Fri Feb 23, 2024 9:20 am
Forum: Personal Finance (Not Investing)
Topic: HR Block 2023: return of PDF printing problems
Replies: 19
Views: 1467

Re: HR Block 2023: return of PDF printing problems

tibbitts wrote: Fri Feb 23, 2024 9:10 am
Just in case anyone is wondering, my recollection is that at least in recent history (more than a decade), the only way to obtain an Adobe printer driver has been to purchase Acrobat Standard or Pro, or some other Adobe software product. If people are looking for it as part of the free Reader download I don't believe it's there, but I'd be interested to know if there's another way to obtain one.
Well, it does no good for me to have standard Adobe show up in H&R Block's print dialog box. I always get a "Could not start print job" error.

Image
by iceport
Fri Feb 23, 2024 8:52 am
Forum: Personal Investments
Topic: Timing to sell mutual fund and buy EFT with proceeds
Replies: 6
Views: 712

Re: Timing to sell mutual fund and buy EFT with proceeds

Yardley16 wrote: Fri Feb 23, 2024 3:35 am Thanks for any insights.
Depending on where you hold the funds, it might be possible to directly *exchange* AWSHX for VFIAX, the traditional mutual fund version share class of VOO. That way, the transactions would occur simultaneously at the close of business and you wouldn't be out of the market for even one second. (And if you were at Vanguard, you could later convert VFIAX to VOO painlessly.)
by iceport
Fri Feb 23, 2024 8:38 am
Forum: Personal Finance (Not Investing)
Topic: HR Block 2023: return of PDF printing problems
Replies: 19
Views: 1467

Re: HR Block 2023: return of PDF printing problems

tibbitts wrote: Fri Feb 23, 2024 1:56 am So... is everybody else successfully PDF-printing their 2023 returns with HRB download federal+state?
I've been using H&R Block for 20 years now, and I've *never* gotten the program to print to PDF properly using the H&R Block PDF installation or my standard (paid) version of Adobe Acrobat. Same with the MS printing options with various versions of Windows.

So I end up using the free version of https://www.pdfforge.org/pdfcreator every year. It's the only time I ever use that program, but every year at tax time, I sure am glad to have it installed. I have no idea why there's never been any trouble at all with H&R Block interacting with this particular program, but nothing else works for me.
by iceport
Wed Feb 21, 2024 3:41 pm
Forum: Investing - Theory, News & General
Topic: If you hate paying taxes, you'll love learning about them. Episode 67, "Bogleheads on Investing" guest, Kaye Thomas.
Replies: 26
Views: 5172

Re: If you hate paying taxes, you'll love learning about them. Episode 67, "Bogleheads on Investing" guest, Kaye Thomas.

BoatyMcB wrote: Wed Feb 21, 2024 3:26 pm Is there a transcript of this?
"Coming soon."

https://boglecenter.net/bogleheads-on-i ... pisode-67/

(The podcast from January is available now. So I don't know the exact turn-around time on the transcripts, but it should be there within a few weeks.)
by iceport
Wed Feb 21, 2024 2:07 pm
Forum: Personal Finance (Not Investing)
Topic: Wash sale shares to decrease loss on
Replies: 12
Views: 835

Re: Wash sale shares to decrease loss on

jdbs3 wrote: Wed Feb 21, 2024 1:03 pm There is chronologically relative to the 2 different sale dates - 21-Feb-23 and 20-Mar-23. And there is chronologically looking at both sale dates and picking the oldest shares from both these dates to offset the 1.970 dividend shares.
Oh, I think I see what your question is now. Here's how I read it. Your wash sale was created on 17-Mar-23. The matching of wash shares is performed as of that date. By the time of your 20-Mar-23 sale, there are no more replacement shares to match, so no wash sale on that date.
by iceport
Wed Feb 21, 2024 12:40 pm
Forum: Investing - Theory, News & General
Topic: Newbie friendly NPR article summarizing Swensen and Boglehead approach
Replies: 32
Views: 4286

Re: Newbie friendly NPR article summarizing Swensen and Boglehead approach

The portfolio put forth is perfectly fine including 20% REITs. If someone actually stuck with it and contributed consistent sums on a regular basis with low-cost index funds and re-balanced as needed, they'd likely be at the top of their "class" in relation to their peers chasing cryptocurrency, individual tech stocks after a run-up, and so on. Maybe even top of their class compared to some Bogleheads that like to tinker too much after every market conditions presents itself. 30% in U.S. stocks. 15% in developed country stocks. 5% in emerging market stocks. 20% in domestic U.S. real estate. 15% in U.S. Treasury bonds. 15% U.S. Treasury Inflation Protected Securities. That is likely true. Personally I don't like implications that ...