Search found 22687 matches

by grabiner
Wed Dec 12, 2018 10:45 pm
Forum: Personal Finance (Not Investing)
Topic: Non-taxable investment income in order to qualify for ACA subsidies?
Replies: 10
Views: 489

Re: Non-taxable investment income in order to qualify for ACA subsidies?

Another option is a small cap/growth oriented stock fund that pays low dividends a (hopefully) has small capital gains distributions. The down side to that is capital gains distributions are usually out of your control. Use a small-cap ETF, Vanguard index fund with an ETF class, or Vanguard Tax-Man...
by grabiner
Wed Dec 12, 2018 10:36 pm
Forum: Personal Finance (Not Investing)
Topic: Non-taxable investment income in order to qualify for ACA subsidies?
Replies: 10
Views: 489

Re: Non-taxable investment income in order to qualify for ACA subsidies?

Another option is a small cap/growth oriented stock fund that pays low dividends a (hopefully) has small capital gains distributions. The down side to that is capital gains distributions are usually out of your control. Use a small-cap ETF, Vanguard index fund with an ETF class, or Vanguard Tax-Man...
by grabiner
Wed Dec 12, 2018 10:26 pm
Forum: Investing - Theory, News & General
Topic: CAP Gains Wellington
Replies: 11
Views: 1052

Re: CAP Gains Wellington

According to the latest estimates from Vanguard, the Admiral shares of the fund will make distributions of about $0.03 per share in short-term capital gains and $4.14 per share in long-term gains. Thanks Fran! Awesome link. Could be worse, I think the Dodge and Cox stock fund (DODGX) will distribut...
by grabiner
Wed Dec 12, 2018 10:18 pm
Forum: Investing - Theory, News & General
Topic: ETF price when dividend is paid
Replies: 4
Views: 316

Re: ETF price when dividend is paid

The net asset value declines by the dividend amount by definition. If an ETF has a million shares and holds $100M of investments, its net asset value is $100 per share. If it then pays out a $1 per share dividend, it holds $99M of assets, and thus its net asset value drops to $99 per share. ETFs tra...
by grabiner
Wed Dec 12, 2018 10:12 pm
Forum: Investing - Help with Personal Investments
Topic: Wellesley end of year cap. gain distribution
Replies: 4
Views: 483

Re: Wellesley end of year cap. gain distribution

If you do receive the distribution, it will be taxable, but your capital loss will be increased by an equal amount, so it won't matter. It does matter than you sell before the dividend. Your capital loss will be increased by the amount of the dividend, but the dividend is mostly non-qualified, so yo...
by grabiner
Wed Dec 12, 2018 10:09 pm
Forum: Investing - Help with Personal Investments
Topic: Exceeded the Social Security Income Limit
Replies: 8
Views: 1038

Re: Exceeded the Social Security Income Limit

I forgot to mention this pertains to her FERS Annuity Supplement which has a maximum income limit for 2018 of $17,400. For every $2 earned over the limit, her supplement next year will be reduced by $1. And unlike Social Security, this is an actual loss. If you claim Social Security at 62, and lose...
by grabiner
Wed Dec 12, 2018 9:55 pm
Forum: Investing - Help with Personal Investments
Topic: In order to not receive a dividend, what date do I need to SELL a mutual fund on?
Replies: 15
Views: 1086

Re: In order to not receive a dividend, what date do I need to SELL a mutual fund on?

indexonly first, remember that when you receive a dividend in a fund, the price of the fund decreases by the respective amount (i.e., it doesn’t change your value, but it does change your recognition for it). If in taxable account, likely why the OP asked the question, the dividend is recognized as...
by grabiner
Wed Dec 12, 2018 9:46 pm
Forum: Investing - Help with Personal Investments
Topic: Converting portfolio from equities to 3-fund
Replies: 6
Views: 364

Re: Converting portfolio from equities to 3-fund

The question remains: Lump sum sale of all equities to buy into my chosen funds or dollar-cost averaging over time. Or liquidate positions as they appear to not be at their low price ebb... Since you are moving from stock into stock, you should liquidate anything you don't want to hold as soon as p...
by grabiner
Wed Dec 12, 2018 9:44 pm
Forum: Investing - Help with Personal Investments
Topic: Taxed account
Replies: 4
Views: 493

Re: Taxed account

We are a c Corp with 48 employees. If this works out and I do happen to get this money I will no longer be working with the company. Would I have any options to put this money into a tax advantaged account. It depends on the nature of your employment. You have to have some type of employment income...
by grabiner
Wed Dec 12, 2018 9:39 pm
Forum: Investing - Help with Personal Investments
Topic: VASVX Capital Gains Distribution - when to sell
Replies: 4
Views: 412

Re: VASVX Capital Gains Distribution - when to sell

Taking the capital gain won't hurt you. When the fund pays out the capital gain, its net asset value will drop by the same amount. Since you plan to sell the fund, you will have a reduced capital gain on the sale equal to the amount distributed. And since the distributed gain is all long-term, there...
by grabiner
Wed Dec 12, 2018 9:32 pm
Forum: Investing - Help with Personal Investments
Topic: Why I use Roth for bond instead of stock. Please correct me...
Replies: 33
Views: 1672

Re: Why I use Roth for bond instead of stock. Please correct me...

I am 69 and retired. Wife is 64, and she will likely live to age 95. My Roth is !00% equities, because we don't need it, and it won't be touched until my wife dies, 30 yrs hence. When wife dies, the beneficiaries of the Roth will be grand-kids and great grand-kids, where the mandatory distributions...
by grabiner
Wed Dec 12, 2018 8:27 pm
Forum: Investing - Help with Personal Investments
Topic: Dividend Reinvestment Messed Up Tax Loss Harvest
Replies: 7
Views: 530

Re: Dividend Reinvestment Messed Up Tax Loss Harvest

So I don't need to do anything right now? Perfect! I will say that if you don't figure it out now while it is fresh in your mind, then it will be much much harder to figure it out later. In particular, your brokerage will not make the adjustment, so you will have to file Form 8949 to report the adj...
by grabiner
Wed Dec 12, 2018 8:23 pm
Forum: Investing - Help with Personal Investments
Topic: Vanguard Wellesly Income
Replies: 44
Views: 5230

Re: Vanguard Wellesly Income

Seems to me that any cash flow from a fund that represents an increase in the NAV (interest, dividends, capital gains) is income, as opposed to return of capital. All three act the same within the fund. If a fund's strategy is to harvest capital gains, then I would consider it income. Tax wise, a L...
by grabiner
Wed Dec 12, 2018 8:19 pm
Forum: Investing - Theory, News & General
Topic: Where do the losses in HY show up? [High Yield bonds]
Replies: 62
Views: 4571

Re: Where do the losses in HY show up? [High Yield bonds]

Even if we assume no repeat of the 1989-90 situation, arrest of Michael Milliken and bankruptcy of Drexel Burnham Lambert, the volatility of these things is still impressive. I was somewhat surprised by this but the 1989-1990 situation looks like a non event when plotted in portfolio visualizer htt...
by grabiner
Tue Dec 11, 2018 11:24 pm
Forum: Personal Finance (Not Investing)
Topic: Moved to new state for final month of 2018 - Roth conversion opportunity?
Replies: 8
Views: 666

Re: Moved to new state for final month of 2018 - Roth conversion opportunity?

Thanks for all the helpful info. So what do you and others think? Should I convert at least some of the Trad money to Roth now, or hold off and roll it all into my company’s 401k so that I can do a back foot Roth next year? Converting as much as you can in NJ at a low rate is a good deal; after tha...
by grabiner
Tue Dec 11, 2018 12:18 am
Forum: Investing - Theory, News & General
Topic: Who is buying SCV, EM, Intl SC
Replies: 41
Views: 2611

Re: Who is buying SCV, EM, Intl SC

I have been more underweighted in international small-cap than anything else this year, so my purchases this year have all been there. (I also harvested losses, but have bought back in.) I haven't added to my small-cap-value holdings other than by reinvesting dividends, and I haven't added to emergi...
by grabiner
Tue Dec 11, 2018 12:14 am
Forum: Personal Finance (Not Investing)
Topic: Tax on unexpected end of year dividend
Replies: 4
Views: 655

Re: Tax on unexpected end of year dividend

If you make a quarterly estimated tax payment, you can avoid the penalty for not paying enough estimated tax by filing Schedule AI on your IRS Form 2210. On that form, you indicate how much of your income was earned in each quarter, and compute a prorated tax; if you earned only 20% of your income ...
by grabiner
Mon Dec 10, 2018 10:30 pm
Forum: Investing - Theory, News & General
Topic: US Treasuries vs Munis in taxable
Replies: 23
Views: 4015

Re: US Treasuries vs Munis in taxable

If you are in the 24% bracket next year, you might keep the CA munis but put the other half of your bonds in a Treasury fund to get the CA tax exemption. You should also buy I-Bonds, which are state tax-exempt and federal tax-deferred, but given the size of that windfall, I don't think this will do...
by grabiner
Mon Dec 10, 2018 10:14 pm
Forum: Personal Finance (Not Investing)
Topic: $234/mo Bronze HMO vs $290/mo Bronze HMO HSA-eligible medical insurance plan?
Replies: 8
Views: 775

Re: $234/mo Bronze HMO vs $290/mo Bronze HMO HSA-eligible medical insurance plan?

If you are healthy and you believe you will stay that way (nobody knows), I would go with the HSA eligible plan. Rarely many say this, but an HSA for a young person is a better investment vehicle than any IRA or 401k plan after you have taken advantage of the match. It doesn't matter whether you ar...
by grabiner
Mon Dec 10, 2018 10:04 pm
Forum: Personal Finance (Not Investing)
Topic: Tax on unexpected end of year dividend
Replies: 4
Views: 655

Re: Tax on unexpected end of year dividend

If you make a quarterly estimated tax payment, you can avoid the penalty for not paying enough estimated tax by filing Schedule AI on your IRS Form 2210. On that form, you indicate how much of your income was earned in each quarter, and compute a prorated tax; if you earned only 20% of your income i...
by grabiner
Mon Dec 10, 2018 9:39 pm
Forum: Investing - Theory, News & General
Topic: Not-Quite-Tax-Loss-Harvesting - do I understand this right?
Replies: 1
Views: 234

Re: Not-Quite-Tax-Loss-Harvesting - do I understand this right?

You are correct. With the impending $12 distribution, you will break even on taxes if you sell a share for a capital gain of $12; if you waited for the distribution and then sold, that would wipe out your capital gain (assuming that the market doesn't move). It is better to sell before the distribut...
by grabiner
Mon Dec 10, 2018 9:30 pm
Forum: Investing - Help with Personal Investments
Topic: Splitting investments between Roth and Rollover IRA
Replies: 3
Views: 418

Re: Splitting investments between Roth and Rollover IRA

Once you adjust for the fact that the IRS owns part of your Rollover IRA, there is no direct advantage for holding stocks in one account or the other. If you are in a 22% tax bracket, $10,000 in a traditional IRA and $7800 in a Roth IRA will give you the same spending value if invested the same way....
by grabiner
Mon Dec 10, 2018 9:27 pm
Forum: Investing - Help with Personal Investments
Topic: Tax efficiency and Vanguard target retirement funds
Replies: 7
Views: 958

Re: Tax efficiency and Vanguard target retirement funds

The conventional wisdom about bonds in tax-deferred accounts assumes that you pay 15% tax on qualified dividends and long-term capital gains. Since you are in a high federal and CA tax bracket, you might pay over 30% tax on qualified dividends and long-term capital gains, but 0% tax on CA munis. The...
by grabiner
Mon Dec 10, 2018 9:19 pm
Forum: Investing - Help with Personal Investments
Topic: convert to TSP Roth or existing brokerage Roth?
Replies: 6
Views: 407

Re: convert to TSP Roth or existing brokerage Roth?

So TSP does not allow Roth conversions within TSP, but conversions still can be done outside TSP. If you are married, the TSP-77 needs to be notarized. And you need to be separated from service to withdraw from the TSP. Or 59-1/2; you can make one in-service withdrawal. (This may become more flexib...
by grabiner
Mon Dec 10, 2018 9:18 pm
Forum: Investing - Help with Personal Investments
Topic: Vanguard Wellesly Income
Replies: 44
Views: 5230

Re: Vanguard Wellesly Income

The dividends on VWINX were not lowered during the recession of 2008-09. Jun 25, 2009 0.219 Dividend Mar 26, 2009 0.233 Dividend Dec 16, 2008 0.585 Dividend Sep 25, 2008 0.24 Dividend Jun 26, 2008 0.252 Dividend Mar 27, 2008 0.23 Dividend Dec 13, 2007 0.538 Dividend Sep 21, 2007 0.23 Dividend Jun 2...
by grabiner
Mon Dec 10, 2018 9:12 pm
Forum: Investing - Help with Personal Investments
Topic: Timing to make a switch
Replies: 3
Views: 482

Re: Timing to make a switch

As long as you keep the same allocation, you don't care whether the market goes up or down; your old and new funds will go up or down together. You should sell your stock funds to buy your preferred replacement stock funds, and sell your bond funds to buy your preferred replacement bond funds.
by grabiner
Mon Dec 10, 2018 9:11 pm
Forum: Investing - Help with Personal Investments
Topic: Waiting Period for selling ETF for same Mutual Fund shares
Replies: 4
Views: 239

Re: Waiting Period for selling ETF for same Mutual Fund shares

The only waiting period of importance is the IRS wash sale rule. If you sell an ETF for a capital loss, and buy the same mutual fund within 30 days, you can't deduct your loss because of the wash sale rule. (Vanguard won't report this as a wash sale, because the IRS only requires reporting of washes...
by grabiner
Mon Dec 10, 2018 9:07 pm
Forum: Investing - Help with Personal Investments
Topic: In this case, should I be 100% stocks?
Replies: 7
Views: 1021

Re: In this case, should I be 100% stocks?

Your Asset Allocation needs to reflect more than just your other retirement vehicles. It also needs to reflect your personal response to market fluctuations. How will you respond to another 2008-2009 when the stock market drops 60%? I am essentially immune to volatility - I can pull a “Spock” (Star...
by grabiner
Mon Dec 10, 2018 9:04 pm
Forum: Investing - Help with Personal Investments
Topic: Made an unwise investment, help solicited
Replies: 41
Views: 3479

Re: Made an unwise investment, help solicited

Aside from some tax issues that always happens with dividends and taxable gains, I don't see how buying Fidelity Puritan is a bad investment. It's a nice conservative fund, something that has turned out to be a good idea this year in fact. It could have been much worse. The problem is the taxable g...
by grabiner
Mon Dec 10, 2018 8:58 pm
Forum: Investing - Help with Personal Investments
Topic: Should I mess around with my taxable account?
Replies: 2
Views: 430

Re: Should I mess around with my taxable account?

Your allocation is close to a typical three-fund portfolio, so I wouldn't sell anything for a capital gain just to simplify. You should sell anything which has a capital loss, and you can also simplify your IRA by selling everything there to buy just VTI (Total Stock Market ETF), AGG/BND (Total Bond...
by grabiner
Mon Dec 10, 2018 8:48 pm
Forum: Investing - Help with Personal Investments
Topic: Dividend Reinvestment Messed Up Tax Loss Harvest
Replies: 7
Views: 530

Re: Dividend Reinvestment Messed Up Tax Loss Harvest

You can't fix it, but the cost will be very small. You have a wash on 63.52 shares, which you will report as an adjustment on your Form 8949; the loss of $93.56 on those shares reported by your broker will be disallowed. The rest of the loss will still be deductible.
by grabiner
Mon Dec 10, 2018 8:43 pm
Forum: Investing - Help with Personal Investments
Topic: Bogle the Mind's IPS (draft) [Investment Policy Statement]
Replies: 20
Views: 2355

Re: Bogle the Mind's IPS (draft) [Investment Policy Statement]

It was also suggested to me to use an ETF in the HSA account to improve the tax efficiency (given that the HSA is taxable in NJ). This is the correct thing to do if you won't hold bonds there (otherwise, use Treasuries or TIPS) and the fund is not with Vanguard (Vanguard's index funds are as tax-ef...
by grabiner
Mon Dec 10, 2018 8:34 pm
Forum: Investing - Theory, News & General
Topic: US Treasuries vs Munis in taxable
Replies: 23
Views: 4015

Re: US Treasuries vs Munis in taxable

my wife and I are in a similar situation...we will be in the 24% bracket in 2019 and live in California. Due to a bit of a windfall this year, we will be in the 37% bracket. Due to the extra income this year, to maintain our overall 60-40 AA, we will need to hold some bonds in taxable , due to not ...
by grabiner
Mon Dec 10, 2018 8:28 pm
Forum: Investing - Help with Personal Investments
Topic: Harvesting a capital loss and what to do next?
Replies: 11
Views: 954

Re: Harvesting a capital loss and what to do next?

I am planning to take a good look at our asset allocation in the new year. In the meantime, would NSITX (Northern Funds Short-Intermediate Tax-Exempt https://www.northerntrust.com/wealth-management/united-states/services/investing/mutual-funds/funds-performance/fixed-income-muni/NOITX) be a good ch...
by grabiner
Mon Dec 10, 2018 12:39 am
Forum: Personal Finance (Not Investing)
Topic: Are US long-term capital gains a marginal tax rate?
Replies: 8
Views: 733

Re: Are US long-term capital gains a marginal tax rate?

Where do I find (ideally at irs.gov) where this is explained? Publication 17 "Your Federal Income Tax", which contains the answer for virtually every federal tax question ever asked on Bogleheads. :D Unfortunately, the 2018 edition is not out yet, so there isn't a good guide for this year's tax cha...
by grabiner
Mon Dec 10, 2018 12:08 am
Forum: Personal Finance (Not Investing)
Topic: Are US long-term capital gains a marginal tax rate?
Replies: 8
Views: 733

Re: Are US long-term capital gains a marginal tax rate?

Where do I find (ideally at irs.gov) where this is explained? Publication 17 "Your Federal Income Tax", which contains the answer for virtually every federal tax question ever asked on Bogleheads. :D Unfortunately, the 2018 edition is not out yet, so there isn't a good guide for this year's tax cha...
by grabiner
Sun Dec 09, 2018 11:12 pm
Forum: Personal Finance (Not Investing)
Topic: Are US long-term capital gains a marginal tax rate?
Replies: 8
Views: 733

Re: Are US long-term capital gains a marginal tax rate?

Capital gains are taxed at a marginal rate, just as ordinary income is; the only difference is that the marginal rates on capital gains are lower. Thus, if you go over the 0% capital gain tax rate, you pay 15% tax only on the capital gains over the limit. The IRS source is the Qualified Dividends an...
by grabiner
Sun Dec 09, 2018 9:21 pm
Forum: Investing - Help with Personal Investments
Topic: Tax Loss Harvest w/ International Fund
Replies: 2
Views: 310

Re: Tax Loss Harvest w/ International Fund

After just reading the wiki, it sounds like i should have done the tax loss harvest before dividend was declared. Not necessarily. The fund price drops by an amount equal to the dividend, so your capital loss increases by the dividend amount. (It's more important to avoid the other direction; if yo...
by grabiner
Sun Dec 09, 2018 9:15 pm
Forum: Investing - Help with Personal Investments
Topic: Windfall predicament
Replies: 20
Views: 2535

Re: Windfall predicament

1. Life Strategy Growth- How does using separate index stock and bond funds make it easier to reallocate funds? I just assumed I could move to the moderate plan and then conservative, etc, when the time came. If you have $800K in a stock fund and $200K in a bond fund, and you want to change to a 60...
by grabiner
Sun Dec 09, 2018 11:50 am
Forum: Investing - Theory, News & General
Topic: How to know what expected price is for index funds/ETFs?
Replies: 4
Views: 284

Re: How to know what expected price is for index funds/ETFs?

A mutual fund is necessarily valued at the net asset value. If a mutual fund owns $10B worth of stock, and has a billion shares, then each share is worth $10. If the stock rises in value from $10B to $11B, your share price will rise from $10 to $11. ETFs are traded on the stock market, but the creat...
by grabiner
Sun Dec 09, 2018 11:32 am
Forum: Investing - Theory, News & General
Topic: Tax ramification question
Replies: 12
Views: 1183

Re: Tax ramification question

You’ll need to pay the taxes via estimated payments, withholdings (could be from a W2 job) or meet certain requirements (90% of tax withheld or 100/110% of last years tax bill withheld) or you’ll face a penalty. Right. One must understand the safe harbor rules when it comes to paying taxes. A quart...
by grabiner
Sun Dec 09, 2018 11:16 am
Forum: Investing - Help with Personal Investments
Topic: Best Re-balancing technique . . .
Replies: 20
Views: 1383

Re: Best Re-balancing technique . . .

I use a spreadsheet like yours. When I rebalance, I compare the actual amount to the target amount. I plan in two steps: Big picture: US/foreign/bonds. This is the most important part of my asset allocation. I want my total bond allocation to come out right, as that determines the risk level of my p...
by grabiner
Sun Dec 09, 2018 11:02 am
Forum: Investing - Help with Personal Investments
Topic: How to handle large, scheduled, lump sum investments / payments?
Replies: 12
Views: 1274

Re: How to handle large, scheduled, lump sum investments / payments?

You don't actually need to deplete your emergency fund. If you have no spare cash in your brokerage account, you can contribute $6K from your bank account to your Roth IRA, but still consider that part of your emergency fund, leaving it in a money-market fund or short-term bond fund. In an emergency...
by grabiner
Sun Dec 09, 2018 10:57 am
Forum: Investing - Help with Personal Investments
Topic: Solid my entire portfolio 12/3/18
Replies: 49
Views: 8434

Re: Solid my entire portfolio 12/3/18

In preparation for moving to a simpler "lazy portfolio" style of investing I sold everything in my retirement portfolio on 12/3/18. So I am now 100% cash. Got a little lucky on the timing, but now I need to figure out when to get back in. Since you are restructuring your portfolio, you should move ...
by grabiner
Sun Dec 09, 2018 10:49 am
Forum: Investing - Help with Personal Investments
Topic: Any reason to keep this Annuity?
Replies: 4
Views: 318

Re: Any reason to keep this Annuity?

Or, if you want to simplify your life, you could just surrender the whole thing right now. It will cost you an additional roughly $3,000 in taxes ($30,000 gain on the annuity times 10% penalty rate), but it will simplify your life. I don't know your tax rate, but assuming 22% plus 10% penalty, this...
by grabiner
Sat Dec 08, 2018 5:15 pm
Forum: Local Chapters and Bogleheads Community
Topic: Master Thread for Baltimore/Southern PA Bogleheads
Replies: 58
Views: 16991

Re: Master Thread for Baltimore/Southern PA Bogleheads

The next meeting is planned for January 13, 2019. We haven't made an official announcement of the time and location, but if you join the mailing list (email BaltimoreBogleheads@gmail.com, the chapter coordinator), you can get the announcement on that mailing list, and RSVP so that we know how large ...
by grabiner
Fri Dec 07, 2018 10:46 pm
Forum: Personal Finance (Not Investing)
Topic: HSA and dental insurance
Replies: 8
Views: 926

Re: HSA and dental insurance

The dental insurance is likely to be a good deal, but check the terms for pre-existing conditions, and choose a plan for which your dentist is in-network. You can also open a Limited-Expense Flexible Spending Account, which is usable only for dental and vision; this allows you to get even more pre-t...
by grabiner
Fri Dec 07, 2018 10:41 pm
Forum: Personal Finance (Not Investing)
Topic: When to consider making extra principal payments on mortgage?
Replies: 24
Views: 2186

Re: When to consider making extra principal payments on mortgage?

What is the interest rate on the mortgage? Sorry, I forgot to mention this very important part. Interest rate is sub-4%. So not much of a guaranteed return. That's still a decent guaranteed return if you don't itemize deductions. Paying down a 4% mortgage gives you a risk-free return of 4%. If you ...
by grabiner
Fri Dec 07, 2018 10:25 pm
Forum: Investing - Help with Personal Investments
Topic: Difference Between SEC 30 Day Yield and Distribution Yield TTM
Replies: 2
Views: 327

Re: Difference Between SEC 30 Day Yield and Distribution Yield TTM

The SEC yield is the estimate of future returns, so it is the number you want to use. Suppose that a mutual fund bought a bond for $1000 with a $20 annual coupon. One year before maturity, the bond is worth $990. If it holds the bond to maturity, it will have $1020 in one year, which is a 3.03% retu...
by grabiner
Fri Dec 07, 2018 10:19 pm
Forum: Investing - Help with Personal Investments
Topic: Unemployed, questions about personal investing situation.
Replies: 13
Views: 1361

Re: Unemployed, questions about personal investing situation.

I do not like VNQ and VXUS in taxable as they are pretty tax inefficient. This is the first I've heard of VXUS as tax inefficient? Compared to??? I think he means VXUS/VNQ has a higher dividend yield compared to VTI. Viewing retirement and non-retirement account allocations collectively, it is bett...