Search found 747 matches

by MrJedi
Wed Jun 16, 2021 7:17 pm
Forum: Personal Investments
Topic: Taxable acct/FI questions
Replies: 4
Views: 279

Re: Taxable acct/FI questions

It doesn't appear that you are maxing 401k, so I would max that before going into the taxable.
by MrJedi
Wed Jun 16, 2021 7:06 pm
Forum: Personal Finance (Not Investing)
Topic: What's Your Credit Card Rewards Strategy?
Replies: 5285
Views: 995136

Re: What's Your Credit Card Rewards Strategy?

Custom Cash looks good but I think I would use it as a Restaurant card. We spend about $1000/month on groceries, so spouse and I both have Blue Cash Preferred cards which works well with the $6000 annual reward rate limit each one has. Spouse has trouble juggling all the different rewards structures...
by MrJedi
Mon Jun 14, 2021 10:58 am
Forum: Personal Investments
Topic: Donation Strategy - Gifting Stock
Replies: 30
Views: 1566

Re: Donation Strategy - Gifting Stock

Fidelity Charitable user here. Happy with the interface since I hold my taxable account at Fidelity. It makes gifts very easy, and you can see the exact tax lots to pick in the online interface. Also Fidelity is running an incentive right now due to COVID where there is no minimum contribution to op...
by MrJedi
Mon Jun 14, 2021 10:54 am
Forum: Personal Finance (Not Investing)
Topic: CSP new offer: 100,000 bonus points
Replies: 86
Views: 7687

Re: CSP new offer: 100,000 bonus points

If you live near a Chase branch, they are offering a better offer when you apply in the branch. You get the 100,000 points but also you get the annual fee waived the first year and a $50 statement credit for groceries. Basically another $145 in value.
by MrJedi
Mon May 17, 2021 3:27 pm
Forum: Personal Investments
Topic: HM Bradley - is it safe - FDIC response
Replies: 57
Views: 8495

Re: HM Bradley - is it safe - FDIC response

nolesrule and patrick013, Does your money go straight to Hatch bank and straight from Hatch Bank; or does it go to HM Bradley first. What can an account holder see? Just Hatch? just HM Bradley? both? Does the interest show up in a Hatch bank account? I wonder what happens in the background. How doe...
by MrJedi
Mon May 17, 2021 12:45 am
Forum: Personal Investments
Topic: HM Bradley - is it safe - FDIC response
Replies: 57
Views: 8495

Re: HM Bradley - is it safe - FDIC response

They have gotten multiple rounds of venture capital.

Also I recall reading last year that one of the strategies would be to get people on the credit card, which will be profitable.
by MrJedi
Sun May 16, 2021 9:52 pm
Forum: Personal Investments
Topic: HM Bradley - is it safe - FDIC response
Replies: 57
Views: 8495

Re: HM Bradley - is it safe - FDIC response

I have an account with them. The routing number I use to direct deposit and ACH funds in and out is directly through Hatch Bank, which is registered on FDIC. Also the 1099-INT I received was directly from Hatch Bank as well. Hatch Bank website directly mentions HMBradley and the Fintech platform off...
by MrJedi
Sun May 16, 2021 6:34 pm
Forum: Personal Investments
Topic: To consolidate 401(k) or not?
Replies: 30
Views: 2384

Re: To consolidate 401(k) or not?

If you have a decent amount there, I would probably leave it. If relatively small then rollover. Something to consider is if you plan to retire between ages 55-59.5, as you can take penalty free distributions from the 401k at the employer your retire from. If you plan to utilize this, you can rollov...
by MrJedi
Sun May 16, 2021 9:18 am
Forum: Personal Investments
Topic: Should I continue to save beyond the match?
Replies: 7
Views: 1208

Re: Should I continue to save beyond the match?

If you plan to retire before 59.5, you may want to start diverting some funds toward taxable to help bridge the gap.
by MrJedi
Sun May 16, 2021 9:01 am
Forum: Personal Investments
Topic: Increase 401k by 2% or Enroll in Company Stock?
Replies: 11
Views: 686

Re: Increase 401k by 2% or Enroll in Company Stock?

Take the 15% discount stocks, sell as soon as you can. You should have MORE money to invest in the 401k, not less.
by MrJedi
Sun May 16, 2021 8:55 am
Forum: Personal Investments
Topic: Michigan 529 Plan vs. Other States
Replies: 19
Views: 1435

Re: Michigan 529 Plan vs. Other States

I have several 529 plans in my state but I can get the deduction by using any state's 529 plan. I recently deep dove into all the top options and I landed on sending my future money to the Michigan 529 plan. If you get the deduction using the Michigan plan and not with others, you'll have a super s...
by MrJedi
Sun May 16, 2021 7:19 am
Forum: Personal Finance (Not Investing)
Topic: Bank of America credit card “feature” (be careful with autopay)
Replies: 53
Views: 7523

Re: Bank of America credit card “feature” (be careful with autopay)

This is not uncommon. I've seen a mix of lenders who will adjust the autopayment and also those who will not. There is no industry standard, so it is important to know what your particular lender will do. If you like to pay manually, you may want to pay BEFORE the statement cuts so that there is no ...
by MrJedi
Sat May 15, 2021 6:46 am
Forum: Personal Investments
Topic: Repay TSP loan or invest in taxable acct. for flexibility?
Replies: 8
Views: 932

Re: Repay TSP loan or invest in taxable acct. for flexibility?

I guess I'm not seeing why you would want to invest the extra cash into a taxable account rather than your tax advantaged TSP.
by MrJedi
Mon May 10, 2021 8:34 pm
Forum: Personal Investments
Topic: [401k Rate Of Return]
Replies: 5
Views: 508

Re: 401K interest rate

Is it abnormal to have a 401K interest rate be 20-25% for 9+ months? I’m not complaining obviously I’m just curious. What do you mean by interest rate? Do you mean the rate of return on your investments? The stock market has bounced back majorly since it bottomed out after the crash last March/Apri...
by MrJedi
Mon May 10, 2021 8:03 pm
Forum: Personal Finance (Not Investing)
Topic: Impact of 2021's Child Tax Credit Expansion
Replies: 2
Views: 436

Re: Impact of 2021's Child Tax Credit Expansion

I see it this way. Your tax credit is going up by $1600/child, but supposedly they are going to distribute $1800/child in advance. That would mean $200 less credit applied at the tax return compared to last year if you receive all of the advance payments. Everything is a bit hazy and the IRS hasn't ...
by MrJedi
Mon May 10, 2021 7:50 pm
Forum: Personal Investments
Topic: Backdoor Roth question
Replies: 9
Views: 423

Re: Backdoor Roth question ation

“ I believe you’ve misread his dates. All contributions and conversion were done in 2021. $6k contribution FOR 2020 made IN 2021. $6k contribution FOR 2021 made IN 2021. $12k conversion made IN 2021. “ Thank you- this is correct. Everything was done for my wife’s account in 2021 but I wanted to att...
by MrJedi
Mon May 10, 2021 7:42 pm
Forum: Personal Investments
Topic: Roll back Rollover IRA to avoid pro rata?
Replies: 17
Views: 906

Re: Roll back Rollover IRA to avoid pro rata?

This largely depends on your tax rates. If you are in high tax brackets, I think the backdoor Roth will be more beneficial compared to taxable account. If you are in low tax brackets, especially 0% LTCG/QD bracket, then the taxable account is already quite tax efficient. The difference will be much ...
by MrJedi
Mon May 10, 2021 7:30 pm
Forum: Personal Investments
Topic: Backdoor Roth question
Replies: 9
Views: 423

Re: Backdoor Roth question ation

You may be misunderstanding contributions vs conversions. These are two distinct and separate steps in the backdoor Roth process. $6000 is the contribution limit per tax year. You can retroactively apply to previous tax year before the tax deadline as you have done. Conversions are always done in th...
by MrJedi
Mon May 10, 2021 6:12 pm
Forum: Personal Investments
Topic: TSP C vs Vanguard S&P 500
Replies: 21
Views: 1449

Re: TSP C vs Vanguard S&P 500

I wouldn't change anything. That ER difference is peanuts and you'll have to deal with extra paperwork and time out of market. There's a good chance that the amount of market movement in that timeframe will be much greater than 0.01%, for better or for worse. I would consider it if you were reducing...
by MrJedi
Mon May 10, 2021 6:00 pm
Forum: Personal Finance (Not Investing)
Topic: 'foreign income', tax credit etc
Replies: 9
Views: 726

Re: 'foreign income', tax credit etc

Do you have a lot of foreign income and foreign tax compared to US income and US tax? As a follow up, I ask this because I suspect you do not have enough actual US tax liability to claim all of your foreign tax credit, since it is a non refundable credit. Basically you cannot claim any parts of thi...
by MrJedi
Mon May 10, 2021 2:43 pm
Forum: Personal Investments
Topic: Selection of 401k funds
Replies: 7
Views: 492

Re: Selection of 401k funds

I'd probably go with 100% FSKAX and then balance the portfolio as needed in her 401k. There are good funds in his 401k but her 401k is a little better. The FSKAX is great for a US stock component, but the international funds are a little more complicated. Her 401k has a great total international ind...
by MrJedi
Mon May 10, 2021 2:30 pm
Forum: Personal Investments
Topic: Rollover 401k from previous employer - two check question
Replies: 6
Views: 433

Re: Rollover 401k from previous employer - two check question

Hello Bogleheads! I recently requested to close and rollover an old 401k account from my previous employer to Fidelity. I received two checks from my old employer; the bulk (99%) of the money was pre-tax and I sent this check today via Fidliety's mobile app to be deposited into my current employer'...
by MrJedi
Mon May 10, 2021 1:55 pm
Forum: Personal Finance (Not Investing)
Topic: 'foreign income', tax credit etc
Replies: 9
Views: 726

Re: 'foreign income', tax credit etc

Do you have a lot of foreign income and foreign tax compared to US income and US tax?
by MrJedi
Sun May 09, 2021 9:22 pm
Forum: Personal Investments
Topic: 457 / 401(k) / 403 (b) - anything I'm missing?
Replies: 13
Views: 1199

Re: 457 / 401(k) / 403 (b) - anything I'm missing?

Sometimes these accounts might have a good stable value fund that you can't get in an IRA. You say it's a low amount though, so I would rollover just for simplicity if it is not a significant chunk of your assets.
by MrJedi
Sun May 09, 2021 9:12 pm
Forum: Personal Investments
Topic: Backdoor & Mega Backdoor Roth in Same Tax Year?
Replies: 29
Views: 2674

Re: Backdoor & Mega Backdoor Roth in Same Tax Year?

It is my understanding that some people go ahead and fill add basis to line 22 and line 24 in their tax software each year as it happens. That does not mean that they send Form 8606 to the IRS every year. They are just keeping the software balances up to date. I would not trust that myself. I would...
by MrJedi
Sun May 09, 2021 8:47 pm
Forum: Investing - Theory, News & General
Topic: 10-20% Bonds? What’s the point?
Replies: 251
Views: 16413

Re: 10-20% Bonds? What’s the point?

How much cash do you have? If you invested some of that cash into higher yielding bonds, would that put you around 10-20%?
by MrJedi
Sun May 09, 2021 6:53 pm
Forum: Investing - Theory, News & General
Topic: 10-20% Bonds? What’s the point?
Replies: 251
Views: 16413

Re: 10-20% Bonds? What’s the point?

A small amount to draw from to generate cash in case stocks get clobbered.

If you hold a cash emergency fund then you may already have this.
by MrJedi
Sun May 09, 2021 1:33 pm
Forum: Personal Investments
Topic: Michigan 529 Plan vs. Other States
Replies: 19
Views: 1435

Re: Michigan 529 Plan vs. Other States

What type of fund are you looking for? The MESP offers a cheap broad US market index fund if that's what you are looking for. Also the state tax benefit would be 4.25% on up to $5000 each year for a single filer, that's $212.50. Put it another way, would you pay a 4+% front sales load to invest some...
by MrJedi
Sat May 08, 2021 9:20 am
Forum: Personal Investments
Topic: Monthly investing into equities only
Replies: 6
Views: 628

Re: Monthly investing into equities only

I would just keep doing what you've been doing if you've been successful at following it for 20 years.

60/30 vs 65/35 is a rather insignificant difference in the bigger picture.

If you must do something, redirect new contributions rather than set off taxable events.
by MrJedi
Sat May 08, 2021 8:57 am
Forum: Personal Investments
Topic: Should I maximize the 12% tax bracket?
Replies: 17
Views: 1624

Re: Should I maximize the 12% tax bracket?

Do you have a Roth 401(k)? If so you can start using that when you're in the 12% bracket (or 0% LTCG tax bracket which is slightly lower). This is assuming you believe this 12% bracket is favorable for you. I would prefer Roth over taxable. Roth vs traditional is a bit trickier.
by MrJedi
Tue May 04, 2021 5:36 pm
Forum: Personal Finance (Not Investing)
Topic: 529 advice for private primary school?
Replies: 14
Views: 1323

Re: 529 advice for private primary school?

If you are depositing and withdrawing right away, any plan with a cash / money market / etc. fund would work perfectly fine.
by MrJedi
Tue May 04, 2021 3:40 pm
Forum: Personal Finance (Not Investing)
Topic: Close out bill on credit card after first purchase?
Replies: 5
Views: 711

Re: Close out bill on credit card after first purchase?

In a busy bar, I do not like to leave my card with the bartender. The reason is typically when you close out, they run your card and then give you the slips before you can verify the charges. I've been hassled a few times when phantom orders were added to my tab, may be an honest mistake on a busy n...
by MrJedi
Tue May 04, 2021 3:13 pm
Forum: Personal Investments
Topic: Why is there a huge divergence between GBTC and BTC-USD?
Replies: 5
Views: 619

Re: Why is there a huge divergence between GBTC and BTC-USD?

Does anyone know why there is such a huge divergence between GBTC and BTC-USD - especially w/in the past few months? Is what we see in the chart pretty much the result of the outrageous GBTC fees? https://drive.google.com/file/d/1hYxeAkC4s8vgamZxSUpjMFULPeLBqOcT/view?usp=sharing One factor, I think...
by MrJedi
Tue May 04, 2021 2:29 pm
Forum: Investing - Theory, News & General
Topic: Why Do Index Funds Pay a Dividend At All?
Replies: 13
Views: 1814

Re: Why Do Index Funds Pay a Dividend At All?

Mutual funds and ETFs are required to distribute dividends due to regulation. Your funds at work are probably CITs (collective investment trust) that are not subject to the same rules. Ahhh makes sense. Thanks! :sharebeer I wonder about this explanation. The OP says the work funds are Vanguard S&am...
by MrJedi
Tue May 04, 2021 1:50 pm
Forum: Personal Finance (Not Investing)
Topic: Please explain the concept of imputed rent to me like I'm a 5 year old
Replies: 55
Views: 4680

Re: Please explain the concept of imputed rent to me like I'm a 5 year old

I don't understand it. I have a niggly feeling that including "imputed rent" in the argument for home ownership is double-counting opportunity costs. I own my car outright and have never considered "imputed lease payments" because I don't see the lease payments I don't pay addin...
by MrJedi
Tue May 04, 2021 12:50 pm
Forum: Personal Finance (Not Investing)
Topic: Canceling Fidelity Brokerage Debit Card
Replies: 13
Views: 1263

Re: Canceling Fidelity Brokerage Debit Card

I would keep it to be honest. Fidelity offers no ATM fees and reimbursed third party ATM fees for all ATMs around the world (they advertise this domestically but it has applied internationally from what I've seen). It's a nice backup to have, and you can disable the card when you're not using it. A...
by MrJedi
Tue May 04, 2021 12:07 pm
Forum: Personal Finance (Not Investing)
Topic: Canceling Fidelity Brokerage Debit Card
Replies: 13
Views: 1263

Re: Canceling Fidelity Brokerage Debit Card

I would keep it to be honest. Fidelity offers no ATM fees and reimbursed third party ATM fees for all ATMs around the world (they advertise this domestically but it has applied internationally from what I've seen). It's a nice backup to have, and you can disable the card when you're not using it.
by MrJedi
Tue May 04, 2021 10:42 am
Forum: Investing - Theory, News & General
Topic: Why Do Index Funds Pay a Dividend At All?
Replies: 13
Views: 1814

Re: Why Do Index Funds Pay a Dividend At All?

Mutual funds and ETFs are required to distribute dividends due to regulation.

Your funds at work are probably CITs (collective investment trust) that are not subject to the same rules.
by MrJedi
Tue May 04, 2021 10:27 am
Forum: Personal Investments
Topic: Question about Backdoor Roth conversion and existing tIRA
Replies: 14
Views: 866

Re: Question about Backdoor Roth conversion and existing tIRA

Is it wise to wait for a year where my income may be lower so I'm taxed less? Or is the IRA so small at this point that it doesn't really matter? I didn't see the amount listed here, but you can easily calculate the tax that would be due of you know the IRA amount, basis amount, and your income tax...
by MrJedi
Tue May 04, 2021 10:19 am
Forum: Personal Investments
Topic: Help me index my 401(k)?
Replies: 19
Views: 785

Re: Help me index my 401(k)?

I decided to put my change on pause for a few days. I felt myself wavering as I thought more about it so I thought holding off would be good until I can set an allocation I'm confident I can stick with. On that note: I have a follow-up question that I'm hoping someone can answer. I couldn't quite f...
by MrJedi
Tue May 04, 2021 10:14 am
Forum: Personal Investments
Topic: Question about Backdoor Roth conversion and existing tIRA
Replies: 14
Views: 866

Re: Question about Backdoor Roth conversion and existing tIRA

For some reason, I never thought about simply converting the whole thing so that future growth won't be taxed. That is a great idea. Would we have to talk to fidelity about a complete conversion? Or is that something she/I could do ourselves? I have never done a conversion at Fidelity but at Vangua...
by MrJedi
Tue May 04, 2021 10:12 am
Forum: Personal Investments
Topic: How to invest remaining savings?
Replies: 16
Views: 1140

Re: How to invest remaining savings?

If you are retiring around 50 and more pretax is an option, then that seems like the best answer to me. When retiring early, you will have many years of low income to do Roth conversions at very low tax rates. It looks like you have only 400k or so in pretax currently. There's a lot of room there be...
by MrJedi
Tue May 04, 2021 10:01 am
Forum: Personal Investments
Topic: Question about Backdoor Roth conversion and existing tIRA
Replies: 14
Views: 866

Re: Question about Backdoor Roth conversion and existing tIRA

For some reason, I never thought about simply converting the whole thing so that future growth won't be taxed. That is a great idea. Would we have to talk to fidelity about a complete conversion? Or is that something she/I could do ourselves? I have never done a conversion at Fidelity but at Vangua...
by MrJedi
Tue May 04, 2021 9:18 am
Forum: Personal Investments
Topic: Best options for investing for kids?
Replies: 34
Views: 2408

Re: Best options for investing for kids?

I do not understand why BH prefers saving for college in taxable over 529. You've got 18 years for that money to potentially quadruple. Why would you keep that in a taxable account? My response was about where to start saving NOW and not the ultimate end point. Eventually, for a wealthy family a 52...
by MrJedi
Tue May 04, 2021 8:23 am
Forum: Personal Investments
Topic: Saved for downpayment but realized that I don't have any desire to be a house owner.
Replies: 66
Views: 5060

Re: Saved for downpayment but realized that I don't have any desire to be a house owner.

I personally wouldn't buy a house if I were single to keep flexibility/mobility up. As long as you invest your money instead of keeping cash, I wouldn't worry at all about missing out on real estate appreciation. When it comes to buy a house and if real estate has appreciated, there's a good chance ...
by MrJedi
Mon May 03, 2021 9:25 pm
Forum: Investing - Theory, News & General
Topic: Fidelity DAF fee structure with low/zero balance
Replies: 2
Views: 419

Fidelity DAF fee structure with low/zero balance

Hello Bogleheads, I couldn't find an answer to this in Fidelity's materials. Before I try to reach out to Fidelity directly, I'm curious if anybody is familiar with the Fidelity DAF fee structure with a zero balance and could share first hand experience. I mostly intend to give shares to the DAF and...
by MrJedi
Mon May 03, 2021 6:05 pm
Forum: Personal Investments
Topic: Best options for investing for kids?
Replies: 34
Views: 2408

Re: Best options for investing for kids?

Are you already maxing out other tax advantaged accounts available to you? 401k, IRA, HSA, etc. The 529 is usually the last tax advantaged considered due to its inflexibility. Since Texas doesn't have a state income tax, there is not a big incentive that other states have in reducing state income ta...
by MrJedi
Mon May 03, 2021 1:50 pm
Forum: Personal Investments
Topic: 401k Contribution Confusion
Replies: 4
Views: 246

Re: 401k Contribution Confusion

When payroll gets run, your withholdings are based on that paycheck's taxable income. On a Roth contribution, you will see the same amount withheld compared to 0% contribution, since it is all taxable income. When you contribute to traditional, then the taxable income on that paycheck goes down and ...
by MrJedi
Mon May 03, 2021 12:49 pm
Forum: Personal Investments
Topic: Fidelity Taxable Account - investment options?
Replies: 12
Views: 1335

Re: Fidelity Taxable Account - investment options?

The tax efficiency difference is in the capital gains the fund can realize. ETFs and the Vanguard mutual funds can generally avoid realizing these gains. Other mutual funds may have to realize these gains occasionally, but for index funds it is generally quite low (there is not a lot of trading in a...