Search found 23107 matches

by grabiner
Thu Feb 14, 2019 6:51 pm
Forum: Investing - Theory, News & General
Topic: How does your stable-value fund stack up with G Fund?
Replies: 18
Views: 1218

Re: How does your stable-value fund stack up with G Fund?

Does TIAA Traditional count as a stable value fund? TIAA TA has various vintages with various rates. 3.0% seems to be a typical floor. I would certainly say so, but it's useful to note what if any liquidity restrictions there are. In particular, a version of TIAA Traditional with a 10-yeasr payout ...
by grabiner
Thu Feb 14, 2019 6:42 pm
Forum: Investing - Theory, News & General
Topic: Taxes - Do you use the 1099 summaries or detailed views?
Replies: 14
Views: 1177

Re: Taxes - Do you use the 1099 summaries or detailed views?

While I use the 1099 summary for the actual tax filing, I check the detailed forms because they may have errors. (One year, Vanguard computed the wrong foreign source qualified dividends for ETFs, and I reported the error. I waited for the corrected form before filing my taxes.)
by grabiner
Wed Feb 13, 2019 11:35 pm
Forum: Investing - Theory, News & General
Topic: The Section 199A Tax Benefits Of REITs Over Direct Real Estate Investments at Kitces.com by Jeffrey Levine
Replies: 32
Views: 3456

Re: The Section 199A Tax Benefits Of REITs Over Direct Real Estate Investments at Kitces.com by Jeffrey Levine

So i’m Thinking we need to edit the wiki to reflect the fact that reits are now just as tax efficienct as total stock market https://www.bogleheads.org/wiki/Tax-efficient_fund_placement They are still less tax-efficient. While only 80% of the dividend is taxable, the taxable dividend is non-qualifi...
by grabiner
Wed Feb 13, 2019 4:48 pm
Forum: Personal Finance (Not Investing)
Topic: Questions about form 1116
Replies: 7
Views: 335

Re: Questions about form 1116

Welcome to the forum! 3) On line 2 of form 1116, should we report the pro rata of our state (Connecticut) taxes? This is our understanding of the instructions for form 1116 and Pub 514 and discussions on this forum here , since Connecticut uses the Federal AGI to start the state return form, and has...
by grabiner
Wed Feb 13, 2019 4:33 pm
Forum: Personal Finance (Not Investing)
Topic: Payoff mortgage vs investing: Looking at the math
Replies: 29
Views: 2632

Re: Payoff mortgage vs investing: Looking at the math

What assumptions are you making about returns? If your investments have the same returns as your mortgage rate, then the mortgage payoff is break-even. And this is a reasonable assumption, since a mortgage payoff is a risk-free, fixed-income investment, and it is common for a low-risk, fixed-income ...
by grabiner
Wed Feb 13, 2019 4:17 pm
Forum: Investing - Theory, News & General
Topic: TLH Question - Getting stuck with both partners
Replies: 15
Views: 913

Re: TLH Question - Getting stuck with both partners

One way I sometimes avoid the situation of getting stuck with both partners is to sell stock fund A and buy stock fund B which I already hold. If the market rises, I don't need to switch back; I am overweighted in B, but I can use dividends and new money to invest more in A. If the market falls in 3...
by grabiner
Wed Feb 13, 2019 4:12 pm
Forum: Investing - Theory, News & General
Topic: What does it means to NOT reinvesting the capital gains?
Replies: 15
Views: 1076

Re: What does it means to NOT reinvesting the capital gains?

So: - Dividends (reinvested or not) are taxable - Capital gains (reinvested or not) are taxable - Share price increase is not taxable And that's where tax efficient funds are coming from? Such as Vanguard's that don't distribute much dividends or cap gains but instead the distributions are reflecte...
by grabiner
Wed Feb 13, 2019 4:00 pm
Forum: Personal Investments
Topic: Problems living off prior investments to max out a retirement account.
Replies: 11
Views: 1212

Re: Problems living off prior investments to max out a retirement account.

Make sure that you have enough pay to cover all your deductions from pay (not just the TSP, but also Social Security, health insurance, FERS retirement, flexible spending account, etc.) If your take-home pay would be reduced below zero, you might not get the TSP deduction made at all, and would lose...
by grabiner
Wed Feb 13, 2019 3:54 pm
Forum: Personal Investments
Topic: Tax-efficient fund placement - does it matter for 85% stock/15% bond portfolio?
Replies: 6
Views: 623

Re: Tax-efficient fund placement - does it matter for 85% stock/15% bond portfolio?

Since you are in CA, in a high tax bracket, you might actually be better off holding CA munis in your taxable account, and all stock in your retirement accounts. The reason is that your tax rate on qualified dividends is an unusually high 15% federal + 3.8% NIIT + 9.3% CA = 28.1%, while you pay the ...
by grabiner
Wed Feb 13, 2019 3:42 pm
Forum: Personal Investments
Topic: Capital Gains Distributions vrs. LTCG
Replies: 7
Views: 624

Re: Capital Gains Distributions vrs. LTCG

If you sell a mutual fund share which you held for six months or less for a capital loss, and it distributed a long-term capital gain, you must recharacterize an amount of your loss equal to the gain from short-term to long-term. (This is to prevent you from buying a fund before it distributes a lon...
by grabiner
Wed Feb 13, 2019 12:41 pm
Forum: Personal Finance (Not Investing)
Topic: Rule of 55 is it official?
Replies: 62
Views: 14592

Re: Rule of 55 is it official?

I don't think any company can prevent you from rolling over your 401k balance when you leave their employment. Yes, they can. I had one at an previous employer that prevented rollovers up until just last year, when they removed that restriction. I have one also. After I left, I was allowed to withd...
by grabiner
Wed Feb 13, 2019 12:28 pm
Forum: Personal Finance (Not Investing)
Topic: Depreciation
Replies: 10
Views: 741

Re: Depreciation

I have been depreciating a real estate office for about 10 years but I recently began to wonder that since I am in a 15% tax bracket/rate whether it makes sense to continue to save 15% now but later pay 25% when disposing of the property? Is there any advantage to continue to depreciate my commerci...
by grabiner
Wed Feb 13, 2019 12:24 am
Forum: Personal Finance (Not Investing)
Topic: HSA not that great in CA
Replies: 14
Views: 1515

Re: HSA not that great in CA

If you have to pay taxes every year on dividends, does that also mean you can record losses to an HSA and deduct it from taxes every year? Only if they would otherwise be deductible. If you hold a mutual fund which declined in value, you can sell for a capital loss. So I guess the best case scenari...
by grabiner
Tue Feb 12, 2019 9:51 pm
Forum: Personal Investments
Topic: Will this cause an audit ?
Replies: 26
Views: 2670

Re: Will this cause an audit ?

Just wanted to check to make sure you know that there are limits in how much can be deducted in any one year for charitable donations. First if you are high income there are restrictions on charitable deductions in general. In addition, there is a percentage limit based on your AGI. See this IRS Pu...
by grabiner
Tue Feb 12, 2019 9:40 pm
Forum: Personal Investments
Topic: Choosing between eliminating PMI or investing
Replies: 18
Views: 1375

Re: Choosing between eliminating PMI or investing

If you get rid of the PMI, you get a 11% risk-free return until the PMI would have otherwise been eliminated, and a 3.875% risk-free return beyond that. You could view this as a single bond. For example, if it would take three years to eliminate the PMI by paying on schedule, and you stay in the hou...
by grabiner
Mon Feb 11, 2019 3:19 pm
Forum: Investing - Theory, News & General
Topic: Will wife’s social security affect my Roth conversions.
Replies: 28
Views: 2171

Re: Will wife’s social security affect my Roth conversions.

Doing Roth conversions in years of low income is a good idea. The amount you convert is taxed as ordinary income (same as if you just withdrew that money), so it does impact the way Social Security is taxed. This is a little complex, but basically there's a formula that takes your non-SS income, ad...
by grabiner
Mon Feb 11, 2019 3:11 pm
Forum: Personal Investments
Topic: Tax avoidance help needed.
Replies: 18
Views: 2027

Re: Tax avoidance help needed.

...The "hump" is not inflation adjusted so more and more Bogleheads will be hitting the "hump". Actually, I think we'll see more Bogleheads coming out the other side of the Hump and having 85% of SS taxed. This is important, to maintain current SS trust fund projections. In the example on the wiki,...
by grabiner
Mon Feb 11, 2019 2:48 pm
Forum: Personal Investments
Topic: Whats better to hold, Roth dollars or Tax-deferred dollars ?
Replies: 84
Views: 5439

Re: Whats better to hold, Roth dollars or Tax-deferred dollars ?

The reason I made that very simple statement is that quite a few people - even some posters with thousands of posts - regularly make the assertion that Roth is better than traditional because it grows tax-free, or that with very long time horizons Roth is better because then the tax-free growth out...
by grabiner
Sun Feb 10, 2019 1:00 pm
Forum: Investing - Theory, News & General
Topic: Tax efficiencies of combination of funds
Replies: 6
Views: 681

Re: Tax efficiencies of combination of funds

According to Morningstar, tax efficiency for 10 years: Total Stock (US): VTSMX 0.49% Total International: VGTSXL 0.76% Total world: VTWSX 0.70% So it would seem holding VTSMX and VGTSXL individually it's better. But if I choose other periods it changes. Would I be correct assuming in average it's e...
by grabiner
Sun Feb 10, 2019 12:26 pm
Forum: Personal Investments
Topic: Impact of tax (in)efficiency
Replies: 10
Views: 1159

Re: Impact of tax (in)efficiency

I'm still a newbie and trying to figure out the impact of taxes on distributions in the Fidelity Total Market and Vanguard Total Market index funds in my taxable account. When I compare the "return after taxes on distributions", the Fidelity Total Market Index Fund (FSKAX) 10-year return was 12.71%...
by grabiner
Sat Feb 09, 2019 3:10 pm
Forum: Personal Finance (Not Investing)
Topic: 75 yr old MIL - Pay off mortgage at 4.0%?
Replies: 30
Views: 1733

Re: 75 yr old MIL - Pay off mortgage at 4.0%?

Paying off the mortgage is a risk-free 4% return, since she cannot deduct the interest. That is a better deal than the low-risk bonds she has in her IRA. If she doesn't want to change her risk level, she could sell the taxable stocks to pay off the mortgage, and then move an equal amount in the IRA ...
by grabiner
Sat Feb 09, 2019 2:55 pm
Forum: Personal Finance (Not Investing)
Topic: tax strategy for minimizing Social Security taxes in returement
Replies: 12
Views: 1005

Re: tax strategy for minimizing SSI taxes in returement

Looks like the minimum* she has is right at the top of the 50% tax bracket. Note that "taxing 50% of SS benefits" is (fortunately) not the same as "paying 50% tax on SS benefits" (which is what "tax bracket" implies). See Taxation of Social Security benefits - Bogleheads for more details. Nor is ei...
by grabiner
Sat Feb 09, 2019 2:12 pm
Forum: Personal Investments
Topic: Pay off Home Mortgage
Replies: 5
Views: 716

Re: Pay off Home Mortgage

If you move in five years, then paying down the mortgage is equivalent to buying a five-year bond, because you will get the money back when you sell the house. So, is a 3.875% return on a five-year bond a good investment? Even if it is tax-deductible, that is better than the return on low-risk five-...
by grabiner
Sat Feb 09, 2019 1:48 pm
Forum: Personal Investments
Topic: 29 years left on mortgate - pay down or invest strategy?
Replies: 13
Views: 1393

Re: 29 years left on mortgate - pay down or invest strategy?

Assuming the debt interest rate % = Expected (lets say ACTUAL for argument purposes) ROI in taxable, then "technically" the individual is indifferent. However, my thought is that $1 put towards mortgage is more valuable than a $1 in a taxable because if you invest in taxable, you will eventually be...
by grabiner
Fri Feb 08, 2019 11:06 am
Forum: Personal Investments
Topic: Only two bond fund choices in my 403b: Which one would be better for 3-fund portfolio?
Replies: 4
Views: 450

Re: Only two bond fund choices in my 403b: Which one would be better for 3-fund portfolio?

Yes, I have TIAA Traditional Annuity ('Retirement Choice' and 'Retirement Choice Plus') and I didn't know it can be a replacement for a bond fund in the 3-fund portfolio. The reason you hold bonds is to reduce the risk of a portfolio with stocks. High-quality bonds provide a fixed income whether th...
by grabiner
Fri Feb 08, 2019 9:56 am
Forum: Personal Investments
Topic: Advice regarding an Annuity
Replies: 14
Views: 1529

Re: Advice regarding an Annuity

I have a FREE 10% withdrawal each year and roll over into my IRA at Vanguard. I don't really want to pay the surrender charges. Weigh the surrender charge against the ongoing costs of the 10-year payout. If you are paying an extra 1.5% per year, then by withdrawing over 10 years, you pay 1.5% the f...
by grabiner
Thu Feb 07, 2019 11:37 pm
Forum: Personal Investments
Topic: Advice regarding an Annuity
Replies: 14
Views: 1529

Re: Advice regarding an Annuity

I have a FREE 10% withdrawal each year and roll over into my IRA at Vanguard. I don't really want to pay the surrender charges. Weigh the surrender charge against the ongoing costs of the 10-year payout. If you are paying an extra 1.5% per year, then by withdrawing over 10 years, you pay 1.5% the f...
by grabiner
Thu Feb 07, 2019 8:00 pm
Forum: Investing - Theory, News & General
Topic: Question about buying new ETFs like VTEB
Replies: 26
Views: 2966

Re: Question about buying new ETFs like VTEB

I have a couple of questions. I'm in the 24% fed income tax bracket (+ 4.5% state income tax). I still have 20 years before retiring. I am looking for a taxable account bond fund. As I understand it, it's only the yields which are federally tax free; selling the fund for more money than purchased i...
by grabiner
Wed Feb 06, 2019 10:48 pm
Forum: Personal Investments
Topic: Help me pick a fund for my HSA in California
Replies: 49
Views: 4572

Re: Help me pick a fund for my HSA in California

I am now on Medicare, so retired from federal service. My TSP is a little over 50% of total assets,so I am going to keep it in bonds. HSA is about 4% of portfolio, I am thinking perhaps a Value ETF such as you have might have less tech/financials sector weight than the VTI and thus less volatile, p...
by grabiner
Wed Feb 06, 2019 10:41 pm
Forum: Personal Investments
Topic: buy a bond ETF before monthly dividend and sell after
Replies: 14
Views: 1166

Re: buy a bond ETF before monthly dividend and sell after

I'm pretty sure bond mutual funds distribute dividends differently than stock funds, and it does not involve a drop in the NAV at distribution. I don't think the bond fund interest is actually accumulating in the NAV like it does in a stock fund. Most bond mutual funds work this way, but not all; c...
by grabiner
Wed Feb 06, 2019 10:39 pm
Forum: Personal Consumer Issues
Topic: Need help. Multiple unexpected hard inquiries affecting my credit score
Replies: 7
Views: 1064

Re: Need help. Multiple unexpected hard inquiries affecting my credit score

Check your actual report, including the official purposes for these inquiries. (I don't know whether you can see the inquiry purposes on Credit Karma or whether you have to get an actual report from the credit bureau.) If some of the inquiries are not identified as mortgage inquiries, then your scor...
by grabiner
Wed Feb 06, 2019 9:48 pm
Forum: Personal Investments
Topic: Withdrawl Question: taxable vs deferred, bonds vs stocks
Replies: 7
Views: 527

Re: Withdrawl Question: taxable vs deferred, bonds vs stocks

Thanks. Can I ask a follow up question. About 1.6M on deferred side and 239k on taxable. Retirement 1-3 years out. Should I stop contributing to the tax deferred side and build the taxable side (just equities) I am 50/50 overall. I am not eligible for a Roth at this time. No, keep deferring. You ar...
by grabiner
Wed Feb 06, 2019 9:46 pm
Forum: Personal Investments
Topic: Withdrawl Question: taxable vs deferred, bonds vs stocks
Replies: 7
Views: 527

Re: Withdrawl Question: taxable vs deferred, bonds vs stocks

If you have bonds in your taxable account, those should be sold first. There will be little or no tax due, and if you wanted to sell stocks, you can move money from stocks to bonds in your tax-deferred account. Normally, it is better to withdraw from your taxable account first (after taking RMDs), e...
by grabiner
Wed Feb 06, 2019 9:42 pm
Forum: Personal Investments
Topic: Is there a broad index fund with no dividends?
Replies: 13
Views: 1275

Re: Is there a broad index fund with no dividends?

You can't avoid dividends completely, but you can minimize them, with something like Vanguard Tax-Managed Capital Appreciation. This fund tracks the Russell 1000 (a large-and-mid-cap index), but selects stocks with lower dividends while maintaining the sector weights. However, I don't normally consi...
by grabiner
Wed Feb 06, 2019 9:38 pm
Forum: Personal Finance (Not Investing)
Topic: Spillover dividends and Vanguard tax info. TAX CENTER Warning
Replies: 17
Views: 2184

Re: Spillover dividends and Vanguard tax info. TAX CENTER WARNING

There are a lot of other variables in your tax situation which won't be known until January. If your foreign stock fund paid you $5000 in dividends, you might actually have $5400 in income (and $400 in foreign tax credit), but you won't know the number until you receive your 1099.
by grabiner
Wed Feb 06, 2019 9:28 pm
Forum: Personal Investments
Topic: Which out of VTI, VXUS, BND to hold in ROTH IRA
Replies: 11
Views: 1173

Re: Which out of VTI, VXUS, BND to hold in ROTH IRA

VXUS allows for a foreign tax credit in taxable, so in theory...... VTI However, the higher dividend yield and more non-qualified dividends make that a wash; the tax cost of VXUS and VTI come out about equal. (You will have to check the numbers for your personal tax situation; the higher dividend y...
by grabiner
Wed Feb 06, 2019 9:26 pm
Forum: Personal Investments
Topic: buy a bond ETF before monthly dividend and sell after
Replies: 14
Views: 1166

Re: buy a bond ETF before monthly dividend and sell after

Wouldn't you realize a short term gain that would be equal in amount and tax rate to the amount of the dividend? It would be a short-term loss, but it would be equal to the dividend assuming that the bond market doesn't move on the dividend day. A short-term loss and a non-qualified dividend is bre...
by grabiner
Wed Feb 06, 2019 9:22 pm
Forum: Personal Investments
Topic: Another mortgage payoff question
Replies: 34
Views: 2118

Re: Another mortgage payoff question

Hi all, I have a 15 year mortgage (7 years remaning), 2.875% rate and $170K balance. See Paying down loans versus investing on the wiki. With 7 years left on your mortgage, paying it off would have a duration of 3.5 years, and a low-risk bond fund with that duration (a mix of Vanguard Intermediate-...
by grabiner
Wed Feb 06, 2019 9:14 pm
Forum: Personal Investments
Topic: Only two bond fund choices in my 403b: Which one would be better for 3-fund portfolio?
Replies: 4
Views: 450

Re: Only two bond fund choices in my 403b: Which one would be better for 3-fund portfolio?

Welcome to the forum! Do you have TIAA Traditional Annuity? This is probably a better fixed-income choice than either of the two. Otherwise, the inflation-linked bond fund is much less expensive. Since it takes less risk, it will often underperform the MetroWest fund, but it will probably outperform...
by grabiner
Wed Feb 06, 2019 9:07 pm
Forum: Personal Investments
Topic: Help me pick a fund for my HSA in California
Replies: 49
Views: 4572

Re: Help me pick a fund for my HSA in California

For those of us not in California or NJ, with a 50/50 total AA, I am considering doing my AA in the HSA as 50/50 also. Is there any downside to doing this vs having the HSA all bonds (ie part of a total 50/50 overall allocation)? It depends on the options in the HSA versus your other plans. If you ...
by grabiner
Sat Feb 02, 2019 5:25 pm
Forum: Investing - Theory, News & General
Topic: Tell me your HSA strategy/advice
Replies: 52
Views: 4884

Re: Tell me your HSA strategy/advice

I believe my Medicare premiums will be deducted from SS when it starts in a few months. Is there an option not to have them deducted from SS and pay out of the HSA? Not sure that is a good idea, just asking. Also, when Medicare premiums are deducted from SS, you are still taxed on the gross SS bene...
by grabiner
Sat Feb 02, 2019 12:31 am
Forum: Investing - Theory, News & General
Topic: Tell me your HSA strategy/advice
Replies: 52
Views: 4884

Re: Tell me your HSA strategy/advice

[quote=MrBeaver post_id=4341523 time=1548420951 user_id=127032 To the question of money source, paying from the HSA while converting the same after-tax amount from tax-deferred to Roth is superior to paying from tax-deferred and leaving money in the HSA. To the AA question, I’d leave HSA and Roth a...
by grabiner
Fri Feb 01, 2019 9:31 pm
Forum: Investing - Theory, News & General
Topic: "3 Tips For Streamlining Your Portfolio"
Replies: 11
Views: 1718

Re: "3 Tips For Streamlining Your Portfolio"

Without a doubt the most daunting feature is having multiple accounts at multiple institutions compared to having lots of holdings in one account. The issue is simply the logistics of knowing whom you are doing business with, how to contact them, how to get online with them, where the documentation...
by grabiner
Fri Feb 01, 2019 9:21 pm
Forum: Investing - Theory, News & General
Topic: Dividends grow by 'double compounding'?
Replies: 15
Views: 1480

Re: Dividends grow by 'double compounding'?

There is no double compounding. Suppose that you buy a stock for $100, it pays a $2 dividend, and its price rises to $106. If you reinvest the dividend, you will get a compounding of your 8% return. Now suppose that the stock did not pay out the dividend. Its price would then be $108, so you would s...
by grabiner
Fri Feb 01, 2019 9:18 pm
Forum: Investing - Theory, News & General
Topic: Protect Against Longevity Tail Risk with Annuities
Replies: 64
Views: 4434

Re: Protect Against Longevity Tail Risk with Annuities

By the way, although they are not a good deal because their point is to raise money for the charity--if the "load" on a commercial annuity is the 10-15% cited by bsteiner, that for CGAs is more like 50%--and they are not legally "insurance," and aren't protected by the state guaranty associations, ...
by grabiner
Fri Feb 01, 2019 9:07 pm
Forum: Personal Investments
Topic: Bond Fund Dividend mistake?
Replies: 10
Views: 611

Re: Bond Fund Dividend mistake?

I always assumed buying a bond fund was pretty much the same as buying the underlying bonds. When you buy a bond you are also buying all accrued but unpaid interest. When you buy a bond fund the accrued interest is in the price, as is the premium or discount depending on the underlying bond yields....
by grabiner
Fri Feb 01, 2019 7:31 pm
Forum: Personal Investments
Topic: Bond fund choice in tax deferred and taxable accounts
Replies: 16
Views: 1309

Re: Bond fund choice in tax deferred and taxable accounts

Thanks for your reply . May be I am too dumb , but I just do not understand what this ‘Premium ‘ is that is being referred to ? Presumably you receive a lower yield for TIPs protection. This is mathematically equivalent to a price premium for the same future cash flows. So, is it a given that TIPS ...
by grabiner
Thu Jan 31, 2019 11:55 pm
Forum: Personal Investments
Topic: [Tax-Free Munis into Roth?]
Replies: 4
Views: 303

Re: [Tax-Free Munis into Roth?]

Welcome to the forum! I had a guy telling me to put part of my 401K into a Tax-Free Munis--- because of the tax advantages, and I was like...in a 401K, you're taxed by your tax rate, not by the rate of the investment. Sure you can invest on both sides of the tax fence -- in a Roth and in a 401K or P...
by grabiner
Thu Jan 31, 2019 9:47 pm
Forum: Personal Investments
Topic: Give Up Wellington at HSA Bank to go to Fidelity?
Replies: 7
Views: 673

Re: Give Up Wellington at HSA Bank to go to Fidelity?

It also isn't that important what you hold in your HSA, versus in other accounts. If you like Wellington, you can hold it in your Vanguard IRA, and hold some other Fidelity fund or ETF in your HSA. Your IRA and HSA are both being saved for retirement expenses, so they should be treated as part of th...
by grabiner
Thu Jan 31, 2019 9:44 pm
Forum: Personal Investments
Topic: Determining which fund is more tax efficient
Replies: 13
Views: 1228

Re: Determining which fund is more tax efficient

Re M* tax-cost ratio. Compare it for two essentially identical funds: VTI and VTSAX. Why does M* show different tax cost ratios for these? Before I look, I'm going to guess VTI is lower because it's an ETF, which I've read is often more tax efficient than a mutual fund (VTSAX). But this is wrong. A...