Search found 22154 matches

by grabiner
Sun Sep 23, 2018 10:42 pm
Forum: Investing - Help with Personal Investments
Topic: REIT ETFs in Taxable Account: To sell or not ?
Replies: 8
Views: 579

Re: Wiki tax-cost article

David: I had not seen the article you linked in the wiki about computing the cost to switch unwanted funds in a taxable account. It was badly needed. I'll bet you wrote it. Thank you. https://www.bogleheads.org/wiki/Paying_a_tax_cost_to_switch_funds You can click on the "View history" tab on a wiki...
by grabiner
Sun Sep 23, 2018 9:53 pm
Forum: Personal Finance (Not Investing)
Topic: Should I Care About My Credit Score if Debt Free?
Replies: 34
Views: 2307

Re: Should I Care About My Credit Score if Debt Free?

One of my employers required me to provide a credit report annually as a condition of keeping my job. It was never explained to me how the credit report would affect my job but I know someone who declined to provide it did not have her job renewed. The report (not the score) could affect your job. ...
by grabiner
Sun Sep 23, 2018 9:48 pm
Forum: Investing - Help with Personal Investments
Topic: REIT ETFs in Taxable Account: To sell or not ?
Replies: 8
Views: 579

Re: REIT ETFs in Taxable Account: To sell or not ?

Do you think a market correction will occur within the next few years that will generate losses to offset the gains? Independent of the market timing issue, this isn't a reason to wait. If you switch and the market drops, you will have a large capital loss to harvest, and you will probably save mor...
by grabiner
Sun Sep 23, 2018 8:53 pm
Forum: Investing - Theory, News & General
Topic: Matter-scatter sidebar: sequence of returns in accumulation
Replies: 5
Views: 570

Re: Matter-scatter sidebar: sequence of returns in accumulation

Morningstar's star ratings, although they try to be fair by taking risk into account and gauging relative to similar funds, I believe go back three years (although it may be more complicated than that). I can't find the formula on Morningstar's site, but the rating goes back 10 years. It is based o...
by grabiner
Sun Sep 23, 2018 8:45 pm
Forum: Investing - Help with Personal Investments
Topic: 529 Plan - NJ Resident
Replies: 17
Views: 1480

Re: 529 Plan - NJ Resident

If you live in NJ and work in NY, dont take NY 529 plan. The NY tax credit is not worth it as NJ taxes you, if you move money from NY then it may tax you again, Whether the tax credit is worthwhile depends on your NJ and NY tax situation. NJ allows you a tax credit which is the lesser of the tax pa...
by grabiner
Sun Sep 23, 2018 8:38 pm
Forum: Investing - Help with Personal Investments
Topic: Paying off mortgage vs investing?
Replies: 20
Views: 1906

Re: Paying off mortgage vs investing?

You cannot look at the amount in interest you would pay over 30 years (which is indeed fearsome for any loan, because 30 years is a long time). 1) You might not be in the home for 30 years 2) You might refinance 3) Inflation eats away at the true cost of the loan because the rate is fixed (i.e. in ...
by grabiner
Sun Sep 23, 2018 8:35 pm
Forum: Investing - Help with Personal Investments
Topic: Paying off mortgage vs investing?
Replies: 20
Views: 1906

Re: Paying off mortgage vs investing?

First time home buyer here. Just closed on a house last month,with a mortgage of 181k with 4.75% interest on a 30 year loan If you are considering making extra payments, you should probably refinance to a 15-year mortgage at a lower rate. This will reduce the interest you pay, whether you pay faste...
by grabiner
Sun Sep 23, 2018 8:30 pm
Forum: Investing - Help with Personal Investments
Topic: How much is too much in one stock?
Replies: 13
Views: 1281

Re: How much is too much in one stock?

One third of their savings is still in seventeen stocks within the taxable account. Some of these stocks represent from 1% to 4.5% of savings. How much is too much in one stock? I wouldn't be too worried about this for now, as long as the 17 stocks aren't mostly in the same industry; holding 1/3 of...
by grabiner
Sun Sep 23, 2018 8:27 pm
Forum: Investing - Help with Personal Investments
Topic: Should we pay off $90K mortgage with idle cash or not?
Replies: 22
Views: 2130

Re: Should we pay off $90K mortgage with available cash or not?

1 Mortgage on house equals $90,387. 15 year fixed mortgage with 106 months remaining. Rate is 3.25%. Wiki article link: Paying down loans versus investing Paying off this mortgage would give you a risk-free 3.25% return, with money coming to you every month as if you bought 106 CDs or bonds maturin...
by grabiner
Sun Sep 23, 2018 8:20 pm
Forum: Investing - Help with Personal Investments
Topic: REIT ETFs in Taxable Account: To sell or not ?
Replies: 8
Views: 579

Re: REIT ETFs in Taxable Account: To sell or not ?

I would suggest selling these funds. Yes, you'll pay tax on the capital gain, but you will make up for it by paying less in taxes every year, and your capital gain will be lower when you sell the replacement fund. Global Real Estate has a foreign tax credit of 5% of the dividend, but that isn't enou...
by grabiner
Sun Sep 23, 2018 8:14 pm
Forum: Investing - Help with Personal Investments
Topic: Rebalancing and Capital Gains
Replies: 1
Views: 207

Re: Rebalancing and Capital Gains

You probably have some tolerance for varying your asset allocation, and if you are outside that tolerance, you need to rebalance to the boundary. If you use the 5/25 limits which are common among Bogleheads, your tolerance is 45-55% stock. Here is my criterion for rebalancing in a taxable account, f...
by grabiner
Sun Sep 23, 2018 7:44 pm
Forum: Personal Finance (Not Investing)
Topic: Should I Care About My Credit Score if Debt Free?
Replies: 34
Views: 2307

Re: Should I Care About My Credit Score if Debt Free?

Even if it is an agency score, it won't be the same as the score you get from FICO. Credit scores are intended to predict the probability that you will default on a new credit obligation; insurance companies care about the probability you will file an insurance claim, which depends on other factors...
by grabiner
Sun Sep 23, 2018 6:46 pm
Forum: Personal Finance (Not Investing)
Topic: Should I Care About My Credit Score if Debt Free?
Replies: 34
Views: 2307

Re: Should I Care About My Credit Score if Debt Free?

Even if it is an agency score, it won't be the same as the score you get from FICO. Credit scores are intended to predict the probability that you will default on a new credit obligation; insurance companies care about the probability you will file an insurance claim, which depends on other factors...
by grabiner
Sun Sep 23, 2018 5:43 pm
Forum: Personal Finance (Not Investing)
Topic: Should I Care About My Credit Score if Debt Free?
Replies: 34
Views: 2307

Re: Should I Care About My Credit Score if Debt Free?

Does our credit score still matter for something that I'm overlooking? My understanding is that credit score is a factor in a lot of things one would not expect - such as insurance premiums. This is true, but sometimes it isn't the 3 agencies scores. The insurance company will sometimes take the sa...
by grabiner
Sun Sep 23, 2018 4:01 pm
Forum: Personal Finance (Not Investing)
Topic: 0 - 0.99% APR on auto... would you finance?
Replies: 32
Views: 3315

Re: 0 - 0.99% APR on auto... would you finance?

If you were offered an APR of 0 - 0.99% on a new vehicle financing, would you finance or still pay 100% cash? This is of course given that the person can afford either choice, does not have debt issues, and have a long record of managing personal finance well. Check the cost. If you forgo a rebate,...
by grabiner
Sun Sep 23, 2018 12:12 pm
Forum: Personal Finance (Not Investing)
Topic: Credit score impact of high card balance
Replies: 6
Views: 354

Re: Credit score impact of high card balance

I recently made a high (for me) purchase on a credit card. Would there be any advantage to making a payment early before the statement date so that the utilization rate was lower at the end of the statement period? Only if your score matters this month. If you apply for credit in October, your Sept...
by grabiner
Sun Sep 23, 2018 12:08 pm
Forum: Personal Finance (Not Investing)
Topic: Should I Care About My Credit Score if Debt Free?
Replies: 34
Views: 2307

Re: Should I Care About My Credit Score if Debt Free?

I'm like the OP and am intrigued by soft inquiries periodically by banks etc where I no longer do business. Credit inquiries supposedly affect credit scores. For instance, I closed Cap One CC a year ago and they checked my report a few months ago. Why?? Soft inquiries (reported only to you) don't a...
by grabiner
Sun Sep 23, 2018 12:00 pm
Forum: Personal Consumer Issues
Topic: You don't get all the rebates if you take the 0% financing
Replies: 17
Views: 2180

Re: You don't get all the rebates if you take the 0% financing

I just bought a new Ford truck today assuming I'd get all of the rebates and 0% financing but found out I'd loose a $1500 rebate if I took the 0%. The way to evaluate this type of deal is to compare the effective interest rate. If you can pay $28,500, or pay $30,000 with 0% interest financing, then...
by grabiner
Sun Sep 23, 2018 11:37 am
Forum: Personal Finance (Not Investing)
Topic: Should I Care About My Credit Score if Debt Free?
Replies: 34
Views: 2307

Re: Should I Care About My Credit Score if Debt Free?

Don't know what my credit score is because I don't really need it. I think the interesting question would be if someone like me has no debt and pays off his credit cards every month, does that effect my score in a negative way? As long as you use your cards, it is good for your score to pay them in...
by grabiner
Sun Sep 23, 2018 11:33 am
Forum: Investing - Help with Personal Investments
Topic: Roth 401k or Traditional?
Replies: 21
Views: 1300

Re: Roth 401k or Traditional?

...can you verify (IRS wise) that the Saver's Credit is calculated on a maximum of $2,000 (single) or $4,000 (married filing jointly) contribution figure? Yes, that is correct. See line 6 of Form 8880. Yep. For this reason, the middle zone of the saver's credit is basically worthless. At 38k AGI (M...
by grabiner
Sun Sep 23, 2018 11:20 am
Forum: Investing - Help with Personal Investments
Topic: Looking for a modest, steady, tax efficient ETF
Replies: 3
Views: 368

Re: Looking for a modest, steady, tax efficient ETF

If you are in a high tax bracket, and need to hold bonds in your taxable account, you would need at least two ETFs for modesty, a stock ETF and a muni ETF. I do not believe there is any balanced ETF which holds munis. There is one balanced mutual fund which holds munis, Vanguard Tax-Managed Balanced...
by grabiner
Sun Sep 23, 2018 11:13 am
Forum: Investing - Help with Personal Investments
Topic: CD mutual funds in 401(a)?
Replies: 3
Views: 296

Re: CD mutual funds in 401(a)?

Welcome to the forum! Since your IRA and employer plan will both provide you with retirement income, you can view the two as a single account in determining your asset allocation. Thus, if you do want to hold CDs, you can hold more CDs in your IRA and make your 401(a) entirely stock (assuming that i...
by grabiner
Sun Sep 23, 2018 11:04 am
Forum: Investing - Help with Personal Investments
Topic: Selling off funds. timing question
Replies: 10
Views: 732

Re: Selling off funds. timing question

I currently have about $70000 in a taxable Vanguard account in various funds including: Vanguard LifeStrategy Income Fund Vanguard Balanced Index Fund Admiral Shares Vanguard Intermediate-Term Investment-Grade Fund Investor Shares Vanguard High Dividend Yield Index Fund Investor Shares Vanguard Tar...
by grabiner
Sun Sep 23, 2018 9:55 am
Forum: Investing - Theory, News & General
Topic: Allocating 1/3 of Investable Assets to Roth Accounts
Replies: 35
Views: 1943

Re: Allocating 1/3 of Investable Assets to Roth Accounts

FWIW, the new 2018 tax brackets are scheduled to phase out in 2025 and apparently revert back to 2017 levels. Actually 2026, but the new brackets will be slightly lower (taxes slightly higher) than they would be under the 2017 rules, because the indexing to chained CPI will remain. If the differenc...
by grabiner
Sat Sep 22, 2018 12:56 pm
Forum: Investing - Theory, News & General
Topic: Which Funds to Take RMD From
Replies: 27
Views: 3549

Re: Which Funds to Take RMD From

Thanks David! So even if one invests in a vanguard total bond index fund they would have to pay taxes on dividends even before they sell their holdings? Yes, but that isn't quite the argument for holding stocks in a taxable account. You pay taxes on dividends from either bond or stock funds. But bo...
by grabiner
Sat Sep 22, 2018 12:53 pm
Forum: Investing - Theory, News & General
Topic: Which Funds to Take RMD From
Replies: 27
Views: 3549

Re: Which Funds to Take RMD From

If you aren't going to spend the RMD, take it from one of the stock funds, and reinvest in the same stock fund in your taxable account. Stock funds will grow nearly tax-free in your taxable account if you never need to spend them, as your heirs will inherit them with a stepped-up basis. If you are ...
by grabiner
Fri Sep 21, 2018 11:15 pm
Forum: Personal Finance (Not Investing)
Topic: Delaying Social Security Until 70
Replies: 115
Views: 8847

Re: Delaying Social Security Until 70

There was a very recent thread on this, and many concluded it was best to file early. I don't agree, but there are other reasons it makes sense. 1) The day after your retire the market plunges 30%, and you have some large early retirement expenses. Best to file rather than tap your accounts. The wa...
by grabiner
Fri Sep 21, 2018 10:53 pm
Forum: Investing - Theory, News & General
Topic: Allocating 1/3 of Investable Assets to Roth Accounts
Replies: 35
Views: 1943

Re: Allocating 1/3 of Investable Assets to Roth Accounts

I think investing in traditional accounts is akin to giving up on your dreams. I never understood the "I will be in a lower tax bracket in retirement". What!! You should want to be WEALTHIER the older you get, not poorer. You should strive to have more income with every passing year. For example, I...
by grabiner
Fri Sep 21, 2018 10:23 pm
Forum: Investing - Help with Personal Investments
Topic: Still haven't made sense of this 50-50 AA situation
Replies: 9
Views: 1315

Re: Still haven't made sense of this 50-50 AA situation

I have been trying to make sense of my situation with RMD bearing down on us. We have the unusual situation of having all of fixed income (bonds) in tax deferred IRAs and all of our equity in our Roths in a 50-50 portfolio. Great efficiency with great placement I think. And that creates a bit of a ...
by grabiner
Fri Sep 21, 2018 10:21 pm
Forum: Investing - Help with Personal Investments
Topic: Stable Value Similat to What Bond Fund
Replies: 9
Views: 733

Re: Stable Value Similat to What Bond Fund

A stable value fund has zero interest-rate risk, so it can be treated as cash for that purpose. The yield may be higher or lower than cash, depending on the terms. (If the yield is higher than the yield on cash, it makes sense to hold the fund even if you wouldn't normally hold cash.) In addition, t...
by grabiner
Fri Sep 21, 2018 7:33 pm
Forum: Investing - Theory, News & General
Topic: Do vanguard tsm and 500 funds distribute capital gain?
Replies: 11
Views: 1252

Re: Do vanguard tsm and 500 funds distribute capital gain?

Can you explain why you feel the addition of ETFs makes those Vanguard mutual funds much less likely to ever have CGDs? I understand the general idea that a large cap index fund, whether it holds smaller cap stocks or not, will never have to divest itself of a stock that doubles in value, almost by...
by grabiner
Fri Sep 21, 2018 7:23 pm
Forum: Personal Finance (Not Investing)
Topic: Another mortgage repayment thread..
Replies: 30
Views: 2167

Re: Another mortgage repayment thread..

Are the investments in your current asset allocation returning more than 2.75% ? If so, then stay invested. If not, then sell and pay off the mortgage. Your current asset allocation incorporates your chosen level of risk. However, risk is not properly measured as a percentage of your investments; i...
by grabiner
Thu Sep 20, 2018 11:35 pm
Forum: Personal Finance (Not Investing)
Topic: Should we temporarily reduce our retirement contributions in order to pay off our $400k mortgage in 7 years?
Replies: 83
Views: 6968

Re: Should we temporarily reduce our retirement contributions in order to pay off our $400k mortgage in 7 years?

We did something similar (paid off a 30 year in 17 years), but this was when we were in the 15% tax bracket. So I would say yes if you are in the now 12% bracket. I don't think I would have done it had I been in the 25% tax bracket, so if you are in the 22% or higher bracket, then I would not. For ...
by grabiner
Thu Sep 20, 2018 10:02 pm
Forum: Personal Finance (Not Investing)
Topic: New car - 0% loan or $500 rebate
Replies: 26
Views: 1939

Re: New car - 0% loan or $500 rebate

I am buying a new car and the dealer is offering 0% interest on a 48 month loan or $500 rebate off the price of the car. The amount that would be financed is $21,700. If I figure the average amount of extra money I will have to invest over the 4 years as 21,700/2=10,850 and then multiply 10,850 by ...
by grabiner
Thu Sep 20, 2018 9:42 pm
Forum: Personal Finance (Not Investing)
Topic: Pay-off or keep mortgage with 2018 interest deduction changes?
Replies: 17
Views: 1606

Re: Pay-off or keep mortgage with 2018 interest deduction changes?

Options include: 1. Paying off the mortgage but assets would come from retirement accounts, triggering substantial tax increases; 2. Continue with the current loan balance and payments with the expectation that return on investments would exceed 3.5% plus taxes on gains; 3. Increase charitable dedu...
by grabiner
Thu Sep 20, 2018 9:35 pm
Forum: Personal Finance (Not Investing)
Topic: Which mortgage would you prepay?
Replies: 12
Views: 1046

Re: Which mortgage would you prepay?

Does it make sense to prepay a mortgage on a rental property? I am not au fait with the US tax system. However I would have thought the goal is to minimize taxable income - i.e. to maintain the mortgage for as long as possible? Given the interest is offset against rental income. The goal is to opti...
by grabiner
Thu Sep 20, 2018 9:24 pm
Forum: Personal Finance (Not Investing)
Topic: Delaying SS? How Long It Will Take for It to Pay Off?
Replies: 52
Views: 4774

Re: Delaying SS? How Long It Will Take for It to Pay Off?

https://www.fool.com/amp/retirement/2018/09/16/delaying-social-security-benefits-heres-how-long-i.aspx This article seems to contradict most of the break-even calculators I have seen before including those discussed on this forum. For instance, the article states that for those with FRA of 67, dela...
by grabiner
Thu Sep 20, 2018 9:09 pm
Forum: Personal Finance (Not Investing)
Topic: Another mortgage repayment thread..
Replies: 30
Views: 2167

Re: Another mortgage repayment thread..

Wiki reference: Paying down loans versus investing 15yr mortgage. 275K remaining, at 2.75%. Home bought at550K in 2008, now worth around 900K. So you have only five years left on the mortgage. This means that you would get a risk-free 2.75% return, with a duration of 2.5 years, if you pay it off, or...
by grabiner
Thu Sep 20, 2018 8:58 pm
Forum: Personal Finance (Not Investing)
Topic: Should we temporarily reduce our retirement contributions in order to pay off our $400k mortgage in 7 years?
Replies: 83
Views: 6968

Re: Should we temporarily reduce our retirement contributions in order to pay off our $400k mortgage in 7 years?

If you want to pay off your mortgage faster, then you should refinance to 15 years at a lower rate. You will then pay less in interest while paying off the mortgage, whether you pay it off in 15 years or 7. And if you do this, I wouldn't recommend reducing retirement contributions to make extra paym...
by grabiner
Thu Sep 20, 2018 8:45 pm
Forum: Investing - Theory, News & General
Topic: Do vanguard tsm and 500 funds distribute capital gain?
Replies: 11
Views: 1252

Re: Do vanguard tsm and 500 funds distribute capital gain?

I don't think one needs to worry about "some massive capital gain distribution" that would put you into "a massive capital gain tax situation." But I think these funds will distribute some minor capital gains from time to time. There is absolutely NO guarantee of no capital gains distributions. Yea...
by grabiner
Thu Sep 20, 2018 6:23 pm
Forum: Investing - Theory, News & General
Topic: How likely is it for a corporate bond rated BAA3/BBB to fail?
Replies: 16
Views: 1354

Re: How likely is it for a corporate bond rated BAA3/BBB to fail?

Risks that can be diversified away are not generally compensated for by the market. It may be profitable to invest in this bond on average. However you don’t get the average if you buy just this bond. You either get your money plus 4.5% or nothing. That is a gigantic variance in outcome (variance =...
by grabiner
Thu Sep 20, 2018 6:01 pm
Forum: Investing - Help with Personal Investments
Topic: treating all of investments as one asset allocation pool
Replies: 14
Views: 1369

Re: treating all of investments as one asset allocation pool

I would appreciate inputs on three more questions. 1. If bonds addition is needed to satisfy asset allocation and 401k is already 100% bonds, is ROTH IRA or taxable account a better place for adding bonds for rebalancing to satisfy asset allocation? Usually Roth IRA. 2. does the below order of with...
by grabiner
Thu Sep 20, 2018 5:50 pm
Forum: Investing - Help with Personal Investments
Topic: HSA investment plan
Replies: 10
Views: 743

Re: HSA investment plan

(~50k invested, working on paying off my wife's student loans while also maxing out my 401k, which is in a target retirement fund). I will have an opportunity to fine tune the asset allocation across other accounts shortly, so I don't mind putting all of this into a bond fund. Since you are paying ...
by grabiner
Thu Sep 20, 2018 5:42 pm
Forum: Investing - Help with Personal Investments
Topic: Traditional TSP and Roth TSP
Replies: 16
Views: 1417

Re: Traditional TSP and Roth TSP

Given your other posts, I believe you work in Florida. This makes the Roth TSP more attractive, as Florida does not tax your salary, and if you retire in a state which does have an income tax, you will pay state tax on traditional but not Roth TSP withdrawals. Note that contributing 5% to the Roth T...
by grabiner
Thu Sep 20, 2018 5:36 pm
Forum: Investing - Help with Personal Investments
Topic: Dollar cost average funds being transferred to new retirement account?
Replies: 25
Views: 1574

Re: Dollar cost average funds being transferred to new retirement account?

Threads several times a week on this. Often quoted studies show that DCA loses to lump sum investing roughly 2/3 of the time. That is correct but I believe those studies relate to a different scenario (a lump sum of money not already in the market). That doesn't matter for the purpose of the study....
by grabiner
Thu Sep 20, 2018 5:26 pm
Forum: Investing - Help with Personal Investments
Topic: Using Capital Losses to Free Up Headspace for Roth Conversions in 12% Tax Bracket
Replies: 2
Views: 363

Re: Using Capital Losses to Free Up Headspace for Roth Conversions in 12% Tax Bracket

This strategy will work. If you convert up to the point where your total taxable income is $38,600 single, $77,200 married, you will pay no tax on your capital gains. For example, if you are single and take the $12,000 standard deduction, you can have income (including conversion) of $50,600. If you...
by grabiner
Thu Sep 20, 2018 5:21 pm
Forum: Investing - Help with Personal Investments
Topic: Would Stop Orders with ETFs protect against a downturn?
Replies: 21
Views: 1238

Re: Would Stop Orders with ETFs protect against a downturn?

So Stops don’t sound all that helpful anymore. Puts seem to be beyond anything I’m wanting to get into. So that leaves me with: - Stock ETFs or Index Funds and just ride out the market. - Managed funds that might be able to provide some protection against a downturn? - a few “well picked” stocks (i...
by grabiner
Sun Sep 16, 2018 8:00 pm
Forum: Investing - Theory, News & General
Topic: 2017 Relative Tax Efficiency
Replies: 94
Views: 15415

Re: 2017 Relative Tax Efficiency

The "tax efficiency" calculation here is different from M*. Perhaps, it can be called tax drag ratio :-) The reason is that M* assumes the highest federal tax rate but no state tax. The spreadsheet allows you to choose your own tax rates on ordinary income and qualified dividends. In addition, M* d...
by grabiner
Sun Sep 16, 2018 10:47 am
Forum: Investing - Theory, News & General
Topic: total bond return vs muni bond
Replies: 6
Views: 731

Re: total bond return vs muni bond

Credit risk premium? Particularly over the time indicated. The current ten-year period started in September 2008, when Treasury yields were unusually low compared to other bond yields because of the financial crisis. MUB lost 12% of its value in one month, while Total Bond Market, which holds a lot...
by grabiner
Sun Sep 16, 2018 10:38 am
Forum: Personal Finance (Not Investing)
Topic: When to Tap Into SS
Replies: 14
Views: 1656

Re: When to Tap Into SS

--my investment portfolio is right around $1.5MM You can afford to use this portfolio to cover your living expenses before you take Social Security. Effectively, you are buying an annuity; you spend money at 65 rather than taking SS, and your benefit at 66 is higher. (And then you can do the same t...