Search found 22979 matches

by grabiner
Tue Jan 22, 2019 11:13 pm
Forum: Personal Finance (Not Investing)
Topic: If you work in several states as a mngmt consultant, where do you file your taxes?
Replies: 12
Views: 782

Re: If you work in several states as a mngmt consultant, where do you file your taxes?

Hi Bogleheads- Not sure if anyone here will know this off the top of his/her head, but I am a partner in a two-person consulting firm and we physically worked in California on a project for one week in 2018, do I need to file a nonresident tax return with California? I haven't been able to find a c...
by grabiner
Tue Jan 22, 2019 10:39 pm
Forum: Investing - Help with Personal Investments
Topic: Tax Efficiency within Stocks: What goes to Taxable vs 401k
Replies: 6
Views: 526

Re: Tax Efficiency within Stocks: What goes to Taxable vs 401k

Here's an exact answer to your question: 401k -> Roth IRA -> Taxable Bonds -> International -> US Most tax inefficient -> Most tax efficient Tax efficiency is irrelevant for 401(k) versus Roth IRA; any fund in either account will lose the same amount to taxes. In particular, you don't care whether ...
by grabiner
Tue Jan 22, 2019 10:35 pm
Forum: Investing - Help with Personal Investments
Topic: Should I increase my stock allocation to 90% stocks?
Replies: 63
Views: 4665

Re: Should I increase my stock allocation to 90% stocks?

You should try to have a rough idea of the amount you need for a downpayment and treat it separate from your overall asset allocation. Invest the money for the DP in something safe like short of intermediate term bonds. You could set it all side now. Thanks for the detailed explanation! But if I se...
by grabiner
Tue Jan 22, 2019 10:31 pm
Forum: Investing - Help with Personal Investments
Topic: Shifting funds from National to California munis
Replies: 13
Views: 945

Re: Shifting funds from National to California munis

My normal recommendation to reduce the tax issue is to hold Limited-Term Tax-Exempt, and CA Long-Term Tax-Exempt. This gives you an overall intermediate-term allocation, with 50% of your bonds in CA, but more than 50% of your income exempt from CA tax.
by grabiner
Mon Jan 21, 2019 5:54 pm
Forum: Investing - Theory, News & General
Topic: IVLU for international value exposure [iShares Edge MSCI Intl Value]
Replies: 16
Views: 2948

Re: IVLU for international value exposure [iShares Edge MSCI Intl Value]

And this year, the fund is back to 100% qualified dividends. iShares 2018 QDI Summary The comparisons to other indexes remain similar; the factor index has about the same yield as the blend index, and a lower yield with better value exposure than the value index. Blend index IEFA: 0.08% expenses, 3....
by grabiner
Sun Jan 20, 2019 12:11 pm
Forum: Investing - Theory, News & General
Topic: International Stock = Lower Qualified Dividends
Replies: 5
Views: 405

Re: International Stock = Lower Qualified Dividends

It's a matter of asset placement rather than amount. I hold Vanguard Total International Stock Admiral in my tIRA where qualified dividends are not an issue. It actually affects asset allocation. The tax costs of US and foreign stock funds are about the same; foreign stocks have more non-qualified ...
by grabiner
Sun Jan 20, 2019 11:58 am
Forum: Investing - Help with Personal Investments
Topic: Sell AMCPX for VEIRX?
Replies: 2
Views: 207

Re: Sell AMCPX for VEIRX?

If you're wanting a large-cap value fund, you might give VVIAX (Vanguard Value Index Fund) a look. Over the past ten years, it's performed very similarly to VEIRX, but only has an ER of 0.05%. Also, VEIRX seems to have had higher dividend payouts than VVIAX. In a tax-advantaged account, this won't ...
by grabiner
Sun Jan 20, 2019 11:56 am
Forum: Investing - Help with Personal Investments
Topic: VNYTX: Municipal Bond Fund
Replies: 5
Views: 580

Re: VNYTX: Municipal Bond Fund

The most likely reason for the NAV of this fund to go down is that interest rates rise. When rates rise, long-term bond prices fall, but yields rise so that you make up the loss if you continue to hold the fund for its duration. (If this happens, your payments will not decrease; if a bond pays $30 p...
by grabiner
Sun Jan 20, 2019 11:52 am
Forum: Investing - Help with Personal Investments
Topic: Bonds In Taxable Account
Replies: 11
Views: 755

Re: Bonds In Taxable Account

Welcome to the forum! What is your tax bracket? In a 22% bracket, I would prefer taxable bonds, unless Vanguard has a fund for your high-tax state; my estimate is that munis and taxable bonds of the same risk have about the same after-tax yield in that bracket. (I wouldn't recommend putting more tha...
by grabiner
Sun Jan 20, 2019 11:49 am
Forum: Investing - Help with Personal Investments
Topic: Small Cap Value Tilt and Asset Location?
Replies: 13
Views: 951

Re: Small Cap Value Tilt and Asset Location?

Small-cap value is slightly less tax-efficient than large-cap blend. The dividend yields are comparable, but more of the small-cap-value dividends are non-qualified. But in contrast to REITs, this isn't so much of a cost that you need to keep small-cap-value out of taxable. At a 2% yield, a fund wit...
by grabiner
Sun Jan 20, 2019 11:31 am
Forum: Investing - Help with Personal Investments
Topic: Taxable account as part of 2-fund AA - balancing, tax efficiency, etc.
Replies: 2
Views: 256

Re: Taxable account as part of 2-fund AA - balancing, tax efficiency, etc.

If all your stock is in your taxable account (whether you hold bonds there as well or not), and your stock holding exceeds your risk tolerance, then you should sell stock and take the capital-gains tax. This is a tax that you were going to pay eventually, so it isn't a major loss to pay it now. But ...
by grabiner
Sun Jan 20, 2019 10:41 am
Forum: Local Chapters and Bogleheads Community
Topic: Master thread for Washington DC Area Bogleheads
Replies: 155
Views: 46764

Re: Master thread for Washington DC Area Bogleheads

bobcat2 wrote:
Sat Jan 19, 2019 1:26 pm
We will be in meeting room #2 of the Silver Spring Library, 900 Wayne Ave, Silver Spring, MD 20910.
Minor correction; we will be in room #1.
by grabiner
Sun Jan 20, 2019 10:39 am
Forum: Personal Finance (Not Investing)
Topic: Bank Acquisition Lowering Credit Score
Replies: 6
Views: 491

Re: Bank Acquisition Lowering Credit Score

Isn't this what happens when one refinances with a different bank? The original mortgage is paid off and closed, and the new mortgage appears. Can anyone who has refinanced verify that their score was restored to its original lofty heights in a short time? What happened here is different. When you ...
by grabiner
Fri Jan 18, 2019 9:25 pm
Forum: Personal Finance (Not Investing)
Topic: Bank Acquisition Lowering Credit Score
Replies: 6
Views: 491

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: 33
Views: 1972

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: 124

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: 7
Views: 689

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: 48
Views: 2792

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: 1939

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: 852
Views: 44926

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: 551

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: 8693

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: 289

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: 1103

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: 2422

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: 4258

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: 1418

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: 1256

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: 1362

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: 884

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: 884

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: 846

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: 491

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: 884

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: 816

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: 1392

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: 5248

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: 17740

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: 2422

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: 2084

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: 56
Views: 5539

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: 5213

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: 1362

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: 523

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: 794

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: 117

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: 291

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: 334

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: 340

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: 415

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...