Search found 22966 matches

by grabiner
Fri Jan 18, 2019 9:25 pm
Forum: Personal Finance (Not Investing)
Topic: Bank Acquisition Lowering Credit Score
Replies: 4
Views: 251

Re: Bank Acquisition Lowering Credit Score

Your credit score presumably dropped only temporarily; the old bank closed your mortgage, and the new bank has not reported the mortgage yet. When the new bank reports it, your score should go back up, because the new bank will report the mortgage with its original date. This type of change because ...
by grabiner
Fri Jan 18, 2019 9:21 pm
Forum: Personal Finance (Not Investing)
Topic: HSA [How do I organize expenses for future reimbursement?]
Replies: 19
Views: 997

Re: HSA [How do I organize expenses for future reimbursement?]

I keep a copy of all my medical bills, with the cancelled checks or credit-card receipts stapled to the bills, and keep these in a folder. I thus have a folder, "2017 medical expenses for HSA reimbursement", just as I have a folder, "2017 tax forms"; both will be saved for the long term. (I save the...
by grabiner
Fri Jan 18, 2019 9:07 pm
Forum: Investing - Help with Personal Investments
Topic: POMIX vs SVSPX in HSA- an issue of fees
Replies: 1
Views: 94

Re: POMIX vs SVSPX in HSA- an issue of fees

As much as I dislike 12b(1) fees, they are no worse than any other fees. Any money a fund takes for its fund company (hidden in the management fee) is just as costly to you as money it takes for brokers (12b(1)). Going with the lower total cost makes sense.
by grabiner
Fri Jan 18, 2019 8:59 pm
Forum: Investing - Help with Personal Investments
Topic: VTEAX Tax Exempt Bond Index Fund
Replies: 6
Views: 484

Re: VTEAX Tax Exempt Bond Index Fund

Going to play devils advocate here. Vteax and vteb the etf May be two share classes of the same fund. That means that vteax May be less at risk of capital gains distributions due to vanguards unique and patented etf structure which lets it wash out capital gains through etf magic. This is not parti...
by grabiner
Fri Jan 18, 2019 8:54 pm
Forum: Investing - Help with Personal Investments
Topic: Where Do HSAs Fit in Asset Location?
Replies: 38
Views: 1832

Re: Where Do HSAs Fit in Asset Location?

For asset location purposes, an HSA should be treated like a Roth IRA, as both are tax-exempt. (This assumes that you are not in CA or NJ. If you live in another state but might move to CA or NJ, you should still treat the HSA like a Roth IRA; you can sell your HSA holdings before moving to CA or NJ...
by grabiner
Thu Jan 17, 2019 8:58 pm
Forum: Personal Finance (Not Investing)
Topic: Parents never paid non-resident state tax for rental property
Replies: 15
Views: 1828

Re: Parents never paid non-resident state tax for rental property

Make sure to file the 2015 Maryland refund claim by April 15, 2019. This isn't relevant if the reason for the MD amended return is an assessment of taxes by another state. From the Maryland 502X instructions" : "A claim for refund resulting from a credit for taxes paid to another state must be file...
by grabiner
Wed Jan 16, 2019 10:41 pm
Forum: Investing - Theory, News & General
Topic: John Bogle has died at age 89
Replies: 827
Views: 40736

Re: John Bogle has died at age 89

Yet another thanks for all that you have done for the world of common investors. Many of the quotes on this thread are reminders of the legacy you has left.

Rest in Peace.
by grabiner
Tue Jan 15, 2019 7:24 pm
Forum: Personal Finance (Not Investing)
Topic: Roth IRA or Build HSA?
Replies: 6
Views: 530

Re: Roth IRA or Build HSA?

An HSA has strings on distributions. It is better to make Roth IRA contributions before unmatched HSA contributions. Also, it is better to take qualified HSA distributions before qualified Roth distributions. The first part is not correct, because of the subsidy. If you use an HSA for medical expen...
by grabiner
Tue Jan 15, 2019 7:18 pm
Forum: Personal Finance (Not Investing)
Topic: Getting a Mortgage when You can Pay Cash for a House
Replies: 162
Views: 8541

Re: Getting a Mortgage when You can Pay Cash for a House

Hi. I’d appreciate it if anyone who has done this can chime in. Say you have 300k cash. That’s on top of other savings such as retirement accounts, taxable funds, and college funds for kids which are adequately funded and will continue to be adequately funded. You want to buy a house. You could pay...
by grabiner
Tue Jan 15, 2019 7:09 pm
Forum: Investing - Theory, News & General
Topic: Tax benefits of deferred income annuity
Replies: 1
Views: 282

Re: Tax benefits of deferred income annuity

You do get a tax benefit, but you may pay the price in higher costs. If you buy a variable annuity, this is easy to see, as variable annuities (even low-cost ones such as Vanguard's) charge higher expenses than mutual funds. If you buy a fixed deferred annuity, you have to look at the implicit costs...
by grabiner
Tue Jan 15, 2019 6:52 pm
Forum: Investing - Help with Personal Investments
Topic: Super Aggressive MF or ETFs?
Replies: 20
Views: 1097

Re: Super Aggressive MF or ETFs?

Welcome to the forum! Keeping AA aside, Looking for insight into what MF or ETFs to buy right now (assume long-term horizon and looking to put in lumpsum or DCA) Not sure if there is level higher than vey aggressive in funds or etfs but I want highest risk highest reward options You can't keep AA as...
by grabiner
Tue Jan 15, 2019 5:56 pm
Forum: Investing - Theory, News & General
Topic: Opinion: Half of investment-grade bonds are only one step away from junk status
Replies: 23
Views: 2401

Re: Opinion: Half of investment-grade bonds are only one step away from junk status

If VCIT starts having a bunch of it’s holdings default,we will all have a lot more to worry about than that,believe me.Much to do about nothing if you use common sense.If you believe in owning corporate bonds there is nothing wrong with VCIT. VCIT won't have a lot of defaults. However, it will have...
by grabiner
Mon Jan 14, 2019 4:54 pm
Forum: Investing - Theory, News & General
Topic: How to avoid temptation to buy hot stocks or bitcoin?
Replies: 63
Views: 4216

Re: How to avoid temptation to buy hot stocks or bitcoin?

Here's a quote from my Investment Policy Statement, which you might put in yours. This statement will be reviewed whenever there is a substantial change in my financial situation, and annually when I rebalance. If there is no substantial change in my financial situation, I will wait at least three m...
by grabiner
Mon Jan 14, 2019 4:50 pm
Forum: Investing - Theory, News & General
Topic: Super Short Term Bond Risks
Replies: 16
Views: 1399

Re: Super Short Term Bond Risks

is it just me or is the after-tax performance pretty bad? The published after-tax numbers assume an investor in the highest (37%) federal tax bracket. Such an investor should not be holding any taxable bonds in a taxable account, as 37% of the returns will be lost to taxes; he or she should either ...
by grabiner
Mon Jan 14, 2019 4:43 pm
Forum: Investing - Help with Personal Investments
Topic: Capital Gains Question from Novice
Replies: 13
Views: 1247

Re: Capital Gains Question from Novice

Vanguard is more tax efficient Tax Cost Ratio The Morningstar Tax Cost Ratio measures how much a fund's annualized return is reduced by the taxes investors pay on distributions. Mutual funds regularly distribute stock dividends, bond dividends and capital gains to their shareholders. Investors then...
by grabiner
Mon Jan 14, 2019 3:18 pm
Forum: Investing - Help with Personal Investments
Topic: Acitvely managed funds -> index funds
Replies: 9
Views: 1358

Re: Acitvely managed funds -> index funds

Thanks all for the input. I have about $35K in unrealized gains so I'm hesitant to sell it all and pay all those taxes. Those taxes need to be paid. If you don't sell the funds now, but sell them later, you will probably have to pay taxes on even larger capital gains. The alternative is to never se...
by grabiner
Sun Jan 13, 2019 11:44 pm
Forum: Investing - Help with Personal Investments
Topic: What does it mean that Vanguard's PAS will default to using use the MinTax cost basis method?
Replies: 11
Views: 875

Re: What does it mean that Vanguard's PAS will default to using use the MinTax cost basis method?

Methodology seems the same as Schwab's default Tax Lot Optimizer: Per Vanguard: 1. Short-term capital loss from largest to smallest. 2. Long-term capital loss from largest to smallest. 3. Short-term zero gain or loss. 4. Long-term zero gain or loss. 5. Long-term capital gain from smallest to larges...
by grabiner
Sun Jan 13, 2019 11:10 pm
Forum: Investing - Help with Personal Investments
Topic: What does it mean that Vanguard's PAS will default to using use the MinTax cost basis method?
Replies: 11
Views: 875

Re: What does it mean that Vanguard's PAS will default to using use the MinTax cost basis method?

Hopefully as you continue in your career, your income will increase so that eventually you will have substantial assets in your taxable account. Vanguard will then have to rebalance the taxable account at some point, and minimizing taxes is always good. However, Vanguard's algorithm for minimizing ...
by grabiner
Sun Jan 13, 2019 5:46 pm
Forum: Investing - Help with Personal Investments
Topic: 95% of my taxable acct is VTIAX international. Bad idea?
Replies: 6
Views: 838

Re: 95% of my taxable acct is VTIAX international. Bad idea?

My concern is that this VTIAX comprises about 95% of my taxable account. So, when I eventually want to withdraw from it, I'd be cashing out international large blend which might be up or down at that time. This isn't a problem, because you can reallocate freely across accounts. If you want to sell ...
by grabiner
Sun Jan 13, 2019 5:44 pm
Forum: Investing - Help with Personal Investments
Topic: Tax efficient short-term investing
Replies: 3
Views: 479

Re: Tax efficient short-term investing

However, for the first time ever we expect to have 30+% federal marginal income tax. I would like to avoid being taxed 1/3rd of the dividends on this bond-heavy portfolio. Muni bonds are a possibility, but I'm not sure that the tax advantages make up for the lower rates. In the 32% tax bracket, the...
by grabiner
Sun Jan 13, 2019 5:38 pm
Forum: Investing - Help with Personal Investments
Topic: What does it mean that Vanguard's PAS will default to using use the MinTax cost basis method?
Replies: 11
Views: 875

Re: What does it mean that Vanguard's PAS will default to using use the MinTax cost basis method?

Hopefully as you continue in your career, your income will increase so that eventually you will have substantial assets in your taxable account. Vanguard will then have to rebalance the taxable account at some point, and minimizing taxes is always good. However, Vanguard's algorithm for minimizing ...
by grabiner
Sun Jan 13, 2019 5:32 pm
Forum: Investing - Help with Personal Investments
Topic: Sell Before the ex dividend date to avoid taxes?
Replies: 6
Views: 812

Re: Sell Before the ex dividend date to avoid taxes?

If you don't have too much in realized losses, then I would suggest waiting for the dividend. For example, suppose that you have $4000 in carryover losses, $1000 in unrealized losses, and a $500 dividend. If you sell now, you will increase your capital losses to $5000, which will allow you to deduct...
by grabiner
Sun Jan 13, 2019 5:25 pm
Forum: Investing - Help with Personal Investments
Topic: Should I put VTIAX or VTSAX into taxable account?
Replies: 20
Views: 1378

Re: Should I put VTIAX or VTSAX into taxable account?

If you intend to do any TLH on these in the taxable account, beware of reinvested dividends in the tax deferred accounts. Can you elaborate? I don't get the interaction between taxable and tax deferred accounts. If you sell a fund for a capital loss, and purchase the same fund within 30 days before...
by grabiner
Sun Jan 13, 2019 4:45 pm
Forum: Personal Finance (Not Investing)
Topic: Took on too much mortgage, seeking advice on where to put money going forward
Replies: 46
Views: 5182

Re: Took on too much mortgage, seeking advice on where to put money going forward

And pay down car loan first. It's not deductible. Even after deduction, the condo loan is at a higher rate (5% is 3.6% after 24% federal tax) than the car loan. And an additional advantage of paying down the condo loan first is that you may be able to eliminate PMI faster (either under the terms of...
by grabiner
Sun Jan 13, 2019 9:54 am
Forum: Local Chapters and Bogleheads Community
Topic: Master Thread for Baltimore/Southern PA Bogleheads
Replies: 59
Views: 17683

January 13 Baltimore/Southern PA meeting cancelled

The restaurant where we meet is closed because of the snow. The January 13 meeting has been cancelled.
by grabiner
Sun Jan 13, 2019 9:43 am
Forum: Investing - Theory, News & General
Topic: Opinion: Half of investment-grade bonds are only one step away from junk status
Replies: 23
Views: 2401

Re: Opinion: Half of investment-grade bonds are only one step away from junk status

I hope my perception of biting sarcasm in your response is false. Of the major investment-grade corporate bond funds, the Vanguard Intermediate-Term Corporate Bond ETF (VCIT) is the riskiest to own. This $18 billion fund yields 3.6% (TTM, or trailing 12 months) but has a dangerous mix of assets. VC...
by grabiner
Sun Jan 13, 2019 9:27 am
Forum: Investing - Help with Personal Investments
Topic: I’m 30 and recently debt free and new to investing
Replies: 18
Views: 2063

Re: I’m 30 and recently debt free and new to investing

Sorry. Did not notice the iShares ETF previously. This can be used as a proxy for your International allocation However, it is more expensive than the other options, so you might want to instead hold your international funds in your Roth IRA. (With the expenses on this 401(k), you want to max out a...
by grabiner
Sun Jan 13, 2019 9:23 am
Forum: Investing - Help with Personal Investments
Topic: Does anyone have entire 401K in bonds?
Replies: 52
Views: 4718

Re: Does anyone have entire 401K in bonds?

In the past I've had 100% of my 401(k) in a total US Bond Market Index fund. That was one of the lowest expense ratio index funds in my 401(k). Yes, this was good because I had a taxable account that needed something, so I put my tax-efficient equities in it. I put equities in Roth IRAs. I put bond...
by grabiner
Sun Jan 13, 2019 8:51 am
Forum: Personal Finance (Not Investing)
Topic: Should I pay more than the minium on my mortgage?
Replies: 39
Views: 5195

Re: Should I pay more than the minium on my mortgage?

Waited for this thread to fall asleep to add my own similar question. Home value appr. 350k Mortgage 290k Savings 120k APR 1.2% APR fixed for another 7 years No mortgage deductions available in this country High yield savings accounts are at 0.9% Savings will cover mortgage amount when APR fix ends...
by grabiner
Sat Jan 12, 2019 9:35 pm
Forum: Investing - Help with Personal Investments
Topic: Acitvely managed funds -> index funds
Replies: 9
Views: 1358

Re: Acitvely managed funds -> index funds

Welcome to the forum! I have several actively managed mutual funds in my taxable account listed below that I intend to exchange for index funds when there is a market downturn so I can tax loss harvest. It's better to sell everything now, rather than waiting for a downturn. If you pay capital-gains ...
by grabiner
Sat Jan 12, 2019 9:23 pm
Forum: Investing - Help with Personal Investments
Topic: Dip into taxable account to fund Roths and medical expenses?
Replies: 5
Views: 522

Re: Dip into taxable account to fund Roths and medical expenses?

If you do not have big gains, moving a taxable dollar of Total US to a Roth dollar of Total US is a good trade. Even if you do have big gains, it's still worth doing. You will pay tax on the gains in your taxable account at some time, but by moving the money to a Roth IRA, you avoid the tax on futu...
by grabiner
Sat Jan 12, 2019 9:19 pm
Forum: Investing - Help with Personal Investments
Topic: Should my partner contribute to his 403(b)?
Replies: 8
Views: 786

Re: Should my partner contribute to his 403(b)?

2. At 64k AGI, the savers credit is 10% of the contribution amount with a max of $1000. [/quote] The Saver's Credit is 10% of the contribution amount, with a maximum contribution counted of $4000, so it's only $400, not $1000. To get a $1000 credit ($2000 if married), you need to get down to the 50...
by grabiner
Sat Jan 12, 2019 12:11 pm
Forum: Personal Finance (Not Investing)
Topic: Retirement Saving vs Foreign Loan Pay-off
Replies: 1
Views: 114

Re: Retirement Saving vs Foreign Loan Pay-off

The way to evaluate the Indian mortgage is to compare dollar and rupee rates, and adjust accordingly. If an Indian bank offers a rupee rate of 7% on a five-year CD (or the Indian equivalent), and a dollar rate of 3%, that implies that the rupee is expected to depreciate by 4% against the dollar, and...
by grabiner
Sat Jan 12, 2019 12:02 pm
Forum: Personal Finance (Not Investing)
Topic: Car Loan Payoff....With Company Allowance
Replies: 3
Views: 287

Re: Car Loan Payoff....With Company Allowance

Paying off the loan is a risk-free, tax-free return of 2.94%. Independent of anything else, that is a good deal (as long as you don't have a better use of the money, such as paying off higher-rate debt, getting the IRS subsidy on an HSA contribution, or getting the employer match on your 401(k)). Yo...
by grabiner
Fri Jan 11, 2019 10:48 pm
Forum: Personal Finance (Not Investing)
Topic: Sold out-of-state rental property - How to calculate state taxes?
Replies: 3
Views: 330

Re: Sold out-of-state rental property - How to calculate state taxes?

See the IT-112-R-I Instructions ; this is the form on which you claim credit. You compute NY tax on all your income, then take a credit which is the lower of the tax paid to the other state, or a prorated share of your NY tax. For example, if you earned half your income out of state, the credit can ...
by grabiner
Fri Jan 11, 2019 10:39 pm
Forum: Investing - Theory, News & General
Topic: how to evaluate an ETF's trading volume
Replies: 7
Views: 333

Re: how to evaluate an ETF's trading volume

Thanks for all the replies so far. Is it accurate to say that as long as the bid/ask spread is low, does not matter what the trading volume is? The trading volume may matter if you want to make a large trade. If an ETF offers a small spread but only 500 shares are available at the ask, you might ha...
by grabiner
Fri Jan 11, 2019 10:34 pm
Forum: Investing - Theory, News & General
Topic: 403B with Roth Option
Replies: 10
Views: 407

Re: 403B with Roth Option

My wife and I are your average Joe Schmoes, middle class, average income, nothing crazy. Either of the below could fit that description. The recommendations we'd give would be totally different. - Married couple, $100K of income, live in Texas. - Married couple, $130K of income, live in NY. And eve...
by grabiner
Fri Jan 11, 2019 10:30 pm
Forum: Investing - Theory, News & General
Topic: Are index fund managers forced to sell stocks when incurring greater trading?
Replies: 28
Views: 1979

Re: Are index fund managers forced to sell stocks when incurring greater trading?

I was talking to a friend and he said that ETFs are way better than mutual funds because when holders of mutual funds begin to sell their funds, this causes the mutual fund manager to have to sell stocks within the fund as well. Is this true? I think he may be thinking of actively managed funds and...
by grabiner
Fri Jan 11, 2019 10:18 pm
Forum: Investing - Help with Personal Investments
Topic: When you exceed the Roth Income Limits - Options?
Replies: 5
Views: 720

Re: When you exceed the Roth Income Limits - Options?

I funded my 5,500 in early January 2018 expecting to have an AGI below the Roth IRA limits however due to some unexpected bonuses, AGI will be above the allowable limits. Seeking suggestions on options and timing on when I would need to take action to avoid any issues. You must recharacterize your ...
by grabiner
Fri Jan 11, 2019 10:13 pm
Forum: Investing - Help with Personal Investments
Topic: Help me decide Roth vs Trad 401k
Replies: 4
Views: 309

Re: Help me decide Roth vs Trad 401k

epeterson1970 wrote:
Fri Jan 11, 2019 1:51 pm
I live in New York.
That strongly favors Traditional if you might not retire in New York, as you can deduct your contributions from NY tax, and will pay no state tax on withdrawals if you retire in a state with no income tax such as FL.
by grabiner
Fri Jan 11, 2019 10:10 pm
Forum: Investing - Help with Personal Investments
Topic: 401(k) vs Taxable on a low income
Replies: 16
Views: 1160

Re: 401(k) vs Taxable on a low income

This is complicated by the $400 saver's credit I would get if I used the 401(k). You can get the Saver's Credit with an IRA as well, either traditional or Roth. If you don't get an employer match, max out your IRA in preference to contributing to the 401(k). If you plan to retire in PA, you should ...
by grabiner
Fri Jan 11, 2019 10:06 pm
Forum: Investing - Help with Personal Investments
Topic: state income tax on VMMXX interest
Replies: 13
Views: 910

Re: state income tax on VMMXX interest

Also on page 21, a little further down from that quote is the restriction: "A New Jersey Qualified Investment Fund is a regulated investment company in which at least 80% of the fund’s investments (other than cash or receivables) are obligations issued either directly by the federal government or t...
by grabiner
Fri Jan 11, 2019 9:58 pm
Forum: Investing - Help with Personal Investments
Topic: Helping Reading 529 Performance
Replies: 2
Views: 155

Re: Helping Reading 529 Performance

Welcome to the forum! A minus means that the fund lost money. In 2018, the US stock market was down about 5%, so any 529 fund which hold stocks is likely to have had losses. (Foreign markets were down even more; broad-based non-US stock funds lost about 14%.) The bond market was flat; some bonds fun...
by grabiner
Thu Jan 10, 2019 8:03 am
Forum: Investing - Theory, News & General
Topic: BHers, what is your Roth IRA %?
Replies: 113
Views: 5249

Re: BHers, what is your Roth IRA %?

In my portfolio spreadsheet I divide my accounts into: Taxable Tax Deferred (tax to be paid on withdrawal) Tax Exempt (never taxed, i.e. Roth IRA) When we divide our accounts up by tax treatment, we usually say: Taxable, Tax-deferred, and Roth (or After-Tax). It isn't technically correct that the R...
by grabiner
Wed Jan 09, 2019 9:29 pm
Forum: Personal Finance (Not Investing)
Topic: Treasury ETFs Tax Treatment
Replies: 4
Views: 502

Re: Treasury ETFs Tax Treatment

And check with your state tax bureau when you sell the ETF. Some states exempt capital gains on Treasury bonds from income tax (which may not be a benefit if you sell for a loss instead).
by grabiner
Wed Jan 09, 2019 9:25 pm
Forum: Personal Finance (Not Investing)
Topic: [Roth Conversions Question - TSP]
Replies: 11
Views: 392

Re: [Roth Conversions Question - TSP]

This is a good idea as long as you keep enough in the TSP to hold your desired bond holding. The G fund in the TSP is better than anything you can hold in a retail account, so you might prefer to hold the G fund rather than getting the potential benefit of a Roth conversion.
by grabiner
Wed Jan 09, 2019 9:22 pm
Forum: Personal Finance (Not Investing)
Topic: Check My Math: Tax Benefits of Mortgage?
Replies: 8
Views: 1125

Re: Check My Math: Tax Benefits of Mortgage?

Also, you have no other itemized deductions? Charity? HSA/FSA/Transit benefits? Charity would increase the tax benefit from the mortgage, because it would make more of the mortgage interest deductible. HSA is an adjustment to income, not an itemized deduction, so it would not affect the benefit of ...
by grabiner
Wed Jan 09, 2019 8:59 pm
Forum: Investing - Theory, News & General
Topic: Strategy for the Bogleheads contest
Replies: 35
Views: 1699

Re: Strategy for the Bogleheads contest

I regularly make the strategic decision to forecast a bear market, because the contest has more bulls than bears. If the market happens to drop, I might win. This year, I was in second place on December 27, but the market went up on the last two days rather than going flat.
by grabiner
Wed Jan 09, 2019 8:57 pm
Forum: Investing - Theory, News & General
Topic: Opinions on First Trust International AlphaDEX ETFs
Replies: 7
Views: 464

Re: Opinions on First Trust International AlphaDEX ETFs

As much as I like the idea, 0.80% is a lot to pay. I won't hold emerging markets small-cap at the price (and tax inefficiency) of EWX (0.65%) and EEMS (0.67%), and this is even more. I am looking at factors for larger-cap value, with IVLU at 0.30%. I may buy that fund once I can get one more year of...
by grabiner
Wed Jan 09, 2019 8:50 pm
Forum: Investing - Theory, News & General
Topic: BHers, what is your Roth IRA %?
Replies: 113
Views: 5249

Re: BHers, what is your Roth IRA %?

The ideal traditional/Roth split in retirement is on the boundary of the brackets which has your current marginal tax rate between the two (or a bit lower than your current marginal tax rate if you max out). If you aren't maxing out your retirement accounts, and you are on that boundary, then puttin...