Search found 22291 matches

by grabiner
Fri Oct 19, 2018 9:54 pm
Forum: Investing - Help with Personal Investments
Topic: Timing mortgage pay down
Replies: 37
Views: 2152

Re: Timing mortgage pay down

Timing actually works slightly in the other direction; it is more attractive to pay down a shorter-term mortgage. If you make an extra payment on a 3% mortgage, your return is 3%, regardless of the remaining time on the mortgage; your balance will be $10,300 less next year, and $10,609 less in two y...
by grabiner
Fri Oct 19, 2018 9:34 pm
Forum: Investing - Help with Personal Investments
Topic: Mutual funds or ETFs in taxable accounts?
Replies: 9
Views: 784

Re: Mutual funds or ETFs in taxable accounts?

In your taxable accounts, do you prefer to hold mutual funds or the equivalent ETFs? Why the preference? (and if you are interested in something like tax loss harvesting?) If you don't invest with Vanguard, use ETFs. The ETF creation-redemption process allows ETFs to avoid most capital gain distrib...
by grabiner
Fri Oct 19, 2018 9:26 pm
Forum: Investing - Help with Personal Investments
Topic: Question Regarding Five Year Rule for Roth IRA Withdrawals (Alan S. Please Help!)
Replies: 22
Views: 1936

Re: Question Regarding Five Year Rule for Roth IRA Withdrawals (Alan S. Please Help!)

.................................. https://www.kitces.com/blog/understanding-the-two-5-year-rules-for-roth-ira-contributions-and-conversions/ ........................................... I'll have to admit that I didn't read this link very carefully................ but did he say you have to leave R...
by grabiner
Fri Oct 19, 2018 9:17 pm
Forum: Investing - Theory, News & General
Topic: How much of a dip do you want before you TLH?
Replies: 27
Views: 1901

Re: How much of a dip do you want before you TLH?

A lot of Bogleheads want Roths because you are paying the tax now rather than in the future. However, isn't TLH doing the opposite of this? Obviously, these are capital gains/losses and not ordinary income. I am not saying TLH cannot be beneficial, but doesn't it somewhat depend on your current tax...
by grabiner
Thu Oct 18, 2018 10:35 pm
Forum: Investing - Theory, News & General
Topic: How much of a dip do you want before you TLH?
Replies: 27
Views: 1901

Re: How much of a dip do you want before you TLH?

I usually wait for about a 10% loss before harvesting. Part of my reason is that I have diminishing returns; I have huge carry-over losses, so it will be years before I get any additional benefit (and I might lose the benefit entirely if I sell the replacement shares for a capital gain). Another rea...
by grabiner
Thu Oct 18, 2018 10:23 pm
Forum: Investing - Theory, News & General
Topic: Dividend withholding makes actual ER of Total International 0.32%?
Replies: 7
Views: 1029

Re: Dividend withholding makes actual ER of Total International 0.32%?

I've frequently made that argument. One of the retorts, is if you hold international in a taxable account, you can claim a credit for much of the foreign withholding on your income taxes. However, with international having a higher yield and fewer qualified dividends, the tax cost is about the same...
by grabiner
Thu Oct 18, 2018 9:59 pm
Forum: Investing - Help with Personal Investments
Topic: Weird cost basis after converting VTIAX to VXUS
Replies: 4
Views: 534

Re: Weird cost basis after converting VTIAX to VXUS

Vanguard has adjusted the prices of each lot of the VXUS shares to correspond to the same dollar amount of each tax lot that you paid for the VTIAX shares. That is the right thing to do, but it doesn't seem to be what Vanguard did. The purchase price should have been multiplied by the same value fo...
by grabiner
Thu Oct 18, 2018 9:27 pm
Forum: Personal Finance (Not Investing)
Topic: Paying off the mortgage early - Isn't this the opposite of "putting more money into your house"?
Replies: 82
Views: 6418

Re: Paying off the mortgage early - Isn't this the opposite of "putting more money into your house"?

[...]And despite his arguments, I do keep my own mortgage, for the same reason he did. I max out my retirement accounts, but my mortgage is fully deductible and at a very low rate (2.625%, 1.79% after state and federal tax), so I can earn more by investing an equal amount in bonds, without taking e...
by grabiner
Wed Oct 17, 2018 10:15 pm
Forum: Personal Finance (Not Investing)
Topic: Tax simulator for 2019
Replies: 5
Views: 906

Re: Tax simulator for 2019

I usually do the simulation with turbo tax by entering the data. Not sure if there is a better way. I tried it, but it only gave me estimates of my federal taxes. It didn't let me specify a different state... Working in NY and residing in NJ is a specific scenario that I couldn't input into that si...
by grabiner
Wed Oct 17, 2018 10:05 pm
Forum: Personal Finance (Not Investing)
Topic: Paying off the mortgage early - Isn't this the opposite of "putting more money into your house"?
Replies: 82
Views: 6418

Re: Paying off the mortgage early - Isn't this the opposite of "putting more money into your house"?

All three of Allan Roth's arguments are correct, as is discussed on the wiki: https://www.bogleheads.org/wiki/Paying_down_loans_versus_investing The fair comparison is not between a balanced portfolio and the mortgage rate, but between bond rates and mortgage rates. While you can have a higher expec...
by grabiner
Wed Oct 17, 2018 8:54 pm
Forum: Investing - Theory, News & General
Topic: Help me understand dividends
Replies: 121
Views: 10223

Re: Help me understand dividends

No... It's still the same exact amount as not having the dividend at all. How do people still not get that number of shares literally doesn't mean anything? It's the total dollar amount that matters. So, then, is the much-touted "miracle of compounding" nothing more than propaganda? Without dividen...
by grabiner
Wed Oct 17, 2018 8:47 pm
Forum: Investing - Help with Personal Investments
Topic: Does Lifestrategy make sense in Roth IRA's
Replies: 26
Views: 3088

Re: Does Lifestrategy make sense in Roth IRA

An advocate for not using Target Date or other all-in-one funds once withdrawals begin: "Even though I love target-date funds for accumulators,” says Christine Benz, director of personal finance at Morningstar, “most all-in-one funds are suboptimal when it comes to retirement withdrawals because th...
by grabiner
Tue Oct 16, 2018 11:36 pm
Forum: Personal Finance (Not Investing)
Topic: What would you do with unexpected tax refund?
Replies: 25
Views: 1267

Re: What would you do with unexpected tax return?

First, check your tax returns; it's possible that your accountant made an error or you forgot to enter some source of income. You don't want to do anything with the $26K and then get a letter from the IRS next year that you owe it back. Next, check the terms of your mortgage, to ensure that you can ...
by grabiner
Tue Oct 16, 2018 11:06 pm
Forum: Investing - Help with Personal Investments
Topic: Does Lifestrategy make sense in Roth IRA's
Replies: 26
Views: 3088

Re: Does Lifestrategy make sense in Roth IRA's

Since Lifestrategy funds are rebalanced daily? does Christine Benz idea still hold water? It would seem perhaps not. She said: "Even though I love target-date funds for accumulators,” says Christine Benz, director of personal finance at Morningstar, “most all-in-one funds are suboptimal when it com...
by grabiner
Mon Oct 15, 2018 3:58 pm
Forum: Personal Finance (Not Investing)
Topic: Social Security [impact of earnings on benefits]
Replies: 29
Views: 2747

Re: social security

Im retired and going to take my social security early at 62 . If I decide to go back to work part time and earn over 17000 a year I will have to pay back 50% of my earnings over 17000. Note that this isn't a loss. If you lose a year of benefits because of the earnings limit, then your benefits will...
by grabiner
Mon Oct 15, 2018 8:25 am
Forum: Investing - Help with Personal Investments
Topic: Convert TIRA to Roth, nondeductible
Replies: 19
Views: 1111

Re: Convert TIRA to Roth, nondeductible

....tax bracket 33%.... ...Or should I wait several years until my income is less, after partial retirement?... ...Prefer paying taxes up front... Do you really prefer paying 33% in taxes now if you might be able to pay a lesser rate later? (There is no 33% tax bracket now; it has become 32%.) It's...
by grabiner
Mon Oct 15, 2018 7:48 am
Forum: Investing - Theory, News & General
Topic: Treasuries in higher tax state
Replies: 12
Views: 1132

Re: Treasuries in higher tax state

How does the return on treasuries compare to something like a total US bond market fund? Would i get a significantly higher return on the bond fund at a higher risk? My understanding is that bond fund prices drop as interest rates go up, so it sounds like there is a high chance of negative return i...
by grabiner
Sun Oct 14, 2018 9:21 pm
Forum: Investing - Theory, News & General
Topic: Treasuries in higher tax state
Replies: 12
Views: 1132

Re: Treasuries in higher tax state

If you buy Treasury bonds in a brokerage account, you will pay spreads, just as on any other trade in a brokerage account. However, spreads on Treasuries are very low. Alternatively, you can buy new-issue Treasury bonds from Treasury Direct. Another way to invest in Treasury bonds is through a Treas...
by grabiner
Sun Oct 14, 2018 9:03 pm
Forum: Investing - Help with Personal Investments
Topic: Asset allocation question -- taxable account
Replies: 8
Views: 884

Re: Asset allocation question -- taxable account

Hi Hedgefundie. VTMFX is 50/50. I want to move toward 40/60, and be 30/70 in probably 12-15 years. My thought was to buy the intermediate tax-exempt fund as a way to allocate more toward bonds. If you have capital gains in Tax-Managed Balanced, then this is the right way to do it. Tax-Managed Balan...
by grabiner
Sun Oct 14, 2018 6:07 pm
Forum: Personal Finance (Not Investing)
Topic: Buy car cash or take low rate loan
Replies: 33
Views: 1822

Re: Buy car cash or take low rate loan

Buying new Tacoma pickup and cost is around 38k. If I get a 2018 then Toyota is offering 1.9% financing on the loan. I can pay cash but with the 1.9% interest rate loan, why not just get the loan and put the money in something that earns 1.9% or greater. Especially in this financial climate where r...
by grabiner
Sun Oct 14, 2018 8:01 am
Forum: Investing - Help with Personal Investments
Topic: What to do with inheritance
Replies: 17
Views: 2386

Re: What to do with inheritance

I wouldn't pay off the house. You could just put the $130k you owe into a 10yr bond and come out ahead so I don't see paying off the house as a good option. FWIW, I'd put it all into index funds. This is discussed on the wiki: Paying down loans versus investing If you pay off the mortgage, rather t...
by grabiner
Sun Oct 14, 2018 7:41 am
Forum: Investing - Help with Personal Investments
Topic: Vanguard Balanced Index Fund Lovers?
Replies: 43
Views: 4680

Re: Vanguard Balanced Index Fund Lovers?

I recently opened a taxable brokerage account and am using the Vanguard Tax-Managed Balanced Fund Admiral Shares (VTMFX) on that account. Does Vanguard Tax-Managed Balanced Fund Admiral Shares (VTMFX) only make sense in a taxable account for people in higher tax brackets? I mean to fully get the be...
by grabiner
Sat Oct 13, 2018 3:39 pm
Forum: Investing - Theory, News & General
Topic: Mini-rebalance with new contributions?
Replies: 2
Views: 219

Re: Mini-rebalance with new contributions?

I do this as well. It is particularly useful in a taxable account. If I am overweighted in emerging markets, then none of my new contributions, nor purchases from dividends, go into Emerging Markets Index. This makes it less likely that a rise in emerging markets will take me over the rebalancing li...
by grabiner
Sat Oct 13, 2018 10:54 am
Forum: Investing - Theory, News & General
Topic: Income/Dividend-paying investment in taxable?
Replies: 3
Views: 625

Re: Income/Dividend-paying investment in taxable?

Before you buy anything new, you should have a plan for your asset allocation. Your list of proposed funds includes corporate bond funds and high-dividend stock funds, which will behave very differently in your portfolio. And they may overlap things already in your portfolio; if you have a broad-bas...
by grabiner
Fri Oct 12, 2018 10:41 pm
Forum: Investing - Help with Personal Investments
Topic: Was in process of Roth conversion when market corrected
Replies: 6
Views: 976

Re: Was in process of Roth conversion when market corrected

What my plan was is this: Transfer out the Deductible portion over to the TSP - leaving only the Non-deductible portion behind, and then convert that. This requires me to cash out many of the positions, two of which are the funds that got spanked. This is irrelevant, because you will be transferrin...
by grabiner
Fri Oct 12, 2018 10:26 pm
Forum: Investing - Help with Personal Investments
Topic: Tax saving/investing tips for onetime bonus
Replies: 10
Views: 529

Re: Tax saving/investing tips for onetime bonus

If your tax bracket this year will be much higher than in future years, you might make a large contribution to charity this year. You could contribute to a donor-advised fund to get the whole deduction this year, then use the donor-advised fund for making large contributions to charity in future yea...
by grabiner
Fri Oct 12, 2018 10:23 pm
Forum: Investing - Help with Personal Investments
Topic: Bonds in a taxable brokerage account
Replies: 3
Views: 448

Re: Bonds in a taxable brokerage account

Welcome to the forum! It makes sense to view your entire portfolio as a unit. If you want your brokerage account to be all stock for tax reasons, then you can sell the bond funds to buy stock funds; then, in your IRA or 401(k), sell stock funds to buy bond funds so that you have the correct overall ...
by grabiner
Fri Oct 12, 2018 10:14 pm
Forum: Investing - Help with Personal Investments
Topic: Was in process of Roth conversion when market corrected
Replies: 6
Views: 976

Re: Was in process of Roth conversion when market corrected

If you have a non-deductible IRA which you are able to convert, you gain nothing by waiting. While the IRA stays non-deductible, you get no tax benefit from future losses, while your tax bill may increase if there are gains and your balance exceeds the already-taxed amount. If you convert to a Roth,...
by grabiner
Fri Oct 12, 2018 6:18 pm
Forum: Personal Finance (Not Investing)
Topic: If I retire to a State that has no State taxes...
Replies: 46
Views: 7345

Re: If I retire to a State that has no State taxes...

This plays on my mind as I live fifty feet from the state line between Iowa and South Dakota. Iowa state tax is 8%. We can't move yet as my spouse and I have government jobs. We'll totally retire in nine months. The hard part is I really like where I life right now. You must be a resident of the st...
by grabiner
Fri Oct 12, 2018 11:47 am
Forum: Personal Finance (Not Investing)
Topic: If I retire to a State that has no State taxes...
Replies: 46
Views: 7345

Re: If I retire to a State that has no State taxes...

If I move from North Carolina to Florida and sell some mutual funds after moving to Florida, then I don't have to pay North Carolina state tax on the capital gains from selling the mutual funds even though I lived in NC for part of the year. Is that correct? This is correct. You may have to report ...
by grabiner
Fri Oct 12, 2018 7:52 am
Forum: Personal Finance (Not Investing)
Topic: Mortgage vs. Cash
Replies: 28
Views: 2172

Re: Mortgage vs. Cash

I just have one observation to add to the above excellent posts: Assuming that New York's efforts to circumvent the new tax law will fail, you will not be able to deduct as much of the mortgage interest above posts above are assuming. (And unfortunately, you will probably lose a lot more than 25% o...
by grabiner
Fri Oct 12, 2018 7:31 am
Forum: Investing - Theory, News & General
Topic: U.S. stocks in freefall
Replies: 7401
Views: 1552605

Re: U.S. stocks in freefall

As it turns out, most of the time there have been 3%+ market losses they occurred when the market was doing a larger correction. So, it probably isn't over yet folks, even if there is a bounce - duck and cover! Unfortunately, 3%+ down days tend to occur during market sell-offs. I looked back at eve...
by grabiner
Fri Oct 12, 2018 7:18 am
Forum: Personal Finance (Not Investing)
Topic: Can a US citizen be a resident of NO state?
Replies: 61
Views: 17839

Re: Can a US citizen be a resident of NO state?

This week talked to a CPA in Ohio and he told me the same thing. Said that it is a misconception that voting affects residency for tax purposes. But did not ask if this is only federal or also state. Think he implied this includes state but am not sure. Voter registration is used by many states as ...
by grabiner
Fri Oct 12, 2018 6:58 am
Forum: Investing - Theory, News & General
Topic: Investment grade bonds now made up of 50% BBB rated
Replies: 26
Views: 2717

Re: Investment grade bonds now made up of 50% BBB rated

I am keeping living expenses from years 3-6, until I receive Social Security, in ST Bond Index. ST Bond Index and ST TIPS have about the same current yield (CPI-U is 2.3%) and both are exempt from state taxes. Does this mean that ST TIPS would be suitable for years 3-6 living expenses? I would pref...
by grabiner
Fri Oct 12, 2018 6:50 am
Forum: Personal Finance (Not Investing)
Topic: Mortgage vs. Cash
Replies: 28
Views: 2172

Re: Mortgage vs. Cash

Doesn't NY have a weird stamp tax act? I thought it was affected by the size of the mortgage but don't understand their real estate enough to know. This would severely limit refi options and that rate is high. That cost, like any other cost of getting the mortgage, effectively increases the rate; i...
by grabiner
Thu Oct 11, 2018 9:16 pm
Forum: Investing - Theory, News & General
Topic: Investment grade bonds now made up of 50% BBB rated
Replies: 26
Views: 2717

Re: Investment grade bonds now made up of 50% BBB rated

Is the ST TIPS fund a suitable holding in a taxable account? No. You get taxed on both the interest and inflation adjustment. However, that's just the net gain, so it isn't an extra disadvantage. If you have $10K in TIPS with a 1% yield, and inflation is 3%, then after one year, you will have $10,4...
by grabiner
Thu Oct 11, 2018 9:00 pm
Forum: Investing - Theory, News & General
Topic: 5 ways target-date funds let investors down
Replies: 38
Views: 3424

Re: 5 ways target-date funds let investors down

To me a big negative for target date funds occurs after retirement. I'm retired and drawing down my portfolio while I delay SS until 70. I like being able to choose whether I sell a stock fund or a bond fund when I need cash. With stocks at all time highs I've been selling stock funds. If the stock...
by grabiner
Thu Oct 11, 2018 6:13 pm
Forum: Personal Finance (Not Investing)
Topic: If I retire to a State that has no State taxes...
Replies: 46
Views: 7345

Re: If I retire to a State that has no State taxes...

It depends on the state(s). You will likely owe some to your previous state prorated for the part of the year you lived there. It won't be prorated. If you are a part-year resident of a state, you owe tax to that state on all income you earned while a resident, and not at all on income earned while...
by grabiner
Thu Oct 11, 2018 6:09 pm
Forum: Investing - Help with Personal Investments
Topic: Pre-Tax TIAA Traditional vs taxable VWITX
Replies: 5
Views: 458

Re: Pre-Tax TIAA Traditional vs taxable VWITX

If all else is equal, I generally recommend holding bonds in tax-deferred, but it often depends on your tax bracket and on bond yields. But for you, all else is not equal; you have an unusually good fixed-income option in your 403(b). The TIAA Traditional Annuity that has a 3.5% current yield (Retir...
by grabiner
Thu Oct 11, 2018 5:58 pm
Forum: Investing - Help with Personal Investments
Topic: Higher fee index fund or lower fee actively managed fund for 403(b)
Replies: 9
Views: 629

Re: Higher fee index fund or lower fee actively managed fund for 403(b)

Welcome to the forum! In a 401(k), the main advantage of indexing is low costs; you expect an actively-managed fund with 0.5% expenses to do worse than an index fund with 0.1% expenses holding similar assets. In your case, since the lowest-cost option is actively-managed, you expect to come out ahea...
by grabiner
Thu Oct 11, 2018 5:47 pm
Forum: Investing - Help with Personal Investments
Topic: Index vs. actively managed funds....is there a good tool to compare?
Replies: 24
Views: 1848

Re: Index vs. actively managed funds....is there a good tool to compare?

When I look at this type of report, one would have to be crazy to NOT invest in an Index. I thought the indexes were these: Dow S&P 500 Nasdaq Russell 2000. These are the most popular indexes, because they are widely published. However, there are many more. Most index providers have a total-market ...
by grabiner
Thu Oct 11, 2018 5:17 pm
Forum: Investing - Help with Personal Investments
Topic: Callable Bond Offering:
Replies: 2
Views: 232

Re: Callable Bond Offering:

It's likely not a good deal for reasons which have little to do with the quality of the bonds. Unless you hold Treasury bonds (or possibly general-obligation state bonds), you want to hold a diversified bond portfolio, so that you are not overexposed to the credit risk of a single issuer. If you do ...
by grabiner
Thu Oct 11, 2018 4:47 pm
Forum: Personal Finance (Not Investing)
Topic: Mortgage vs. Cash
Replies: 28
Views: 2172

Re: Mortgage vs. Cash

Since Vanguard doesn't offer a fund with duration equal to the 30-year mortgage, I will compare with a 15-year mortgage, which would probably be about 4%. A 30 year mortgage has a duration about 10. Duration is about the average time weighted cash flows. For bonds, most of that is at the end of 10 ...
by grabiner
Wed Oct 10, 2018 9:26 pm
Forum: Forum Issues and Administration
Topic: My threads or posts.
Replies: 6
Views: 625

Re: My threads or posts.

Click the menu icon at top of page (3 horizontal lines) and click the link that says "your posts". When I do this, I get a list of the threads I've posted in. OP, if you just want a list of your own posts, it's available as well. In the upper-right-hand corner, click on your username, then in the d...
by grabiner
Wed Oct 10, 2018 8:42 pm
Forum: Investing - Help with Personal Investments
Topic: using IRA distributions to buy munis
Replies: 17
Views: 1147

Re: using IRA distributions to buy munis

250k income=16.8 effective tax rate that's what counts rather than marginal bracket florida resident Effective rate is not what counts when you are looking at Roth conversions (which you are apparently doing). Nor when you are buying munis. If you are in the 24% tax bracket (a married couple earnin...
by grabiner
Wed Oct 10, 2018 8:38 pm
Forum: Investing - Help with Personal Investments
Topic: Buying right before a dividend and capital gain distributions
Replies: 6
Views: 1183

Re: Buying right before a dividend and capital gain distributions

For a typical distribution, there is little benefit for waiting, and it probably isn't worth waiting too long. Consider a fund like Vanguard Total Stock Market, which distributes about a 2% qualified dividend annually, or 0.5% per quarter. In a typical tax bracket, the tax cost is 0.08%, which is $...
by grabiner
Wed Oct 10, 2018 8:35 pm
Forum: Investing - Theory, News & General
Topic: Difference between Vanguard New (2018) Factor Funds vs Old Factor Funds?
Replies: 4
Views: 703

Re: Difference between Vanguard New (2018) Factor Funds vs Old Factor Funds?

I did switch, because the new ETF gives better exposure to the factors. (All numbers from Vanguard.) Vanguard Value Index has a 17.6 P/E, 2.4 P/B. Vanguard Small-Cap Value Index has a 15.8 P/E, 1.9 P/B. VFVA has 12.0 P/E, 1.5 P/B. VFVA has about the same large/small split as a 50/50 split of Value ...
by grabiner
Tue Oct 09, 2018 9:01 pm
Forum: Investing - Theory, News & General
Topic: Difference between Vanguard New (2018) Factor Funds vs Old Factor Funds?
Replies: 4
Views: 703

Re: Difference between Vanguard New (2018) Factor Funds vs Old Factor Funds?

I did switch, because the new ETF gives better exposure to the factors. (All numbers from Vanguard.) Vanguard Value Index has a 17.6 P/E, 2.4 P/B. Vanguard Small-Cap Value Index has a 15.8 P/E, 1.9 P/B. VFVA has 12.0 P/E, 1.5 P/B. VFVA has about the same large/small split as a 50/50 split of Value a...
by grabiner
Tue Oct 09, 2018 8:27 pm
Forum: Investing - Help with Personal Investments
Topic: tlh vfwax to vtiax if both have losses? min to tlh?
Replies: 6
Views: 467

Re: tlh vfwax to vtiax if both have losses? min to tlh?

What I have sometimes done with losses in A and B is sold A to buy B, with the intention of selling B to buy back into A 31 days later. If the market happens to rise enough to make the reverse transaction undesirable, then I still have money in funds I want to hold, and I fix my allocation by direct...
by grabiner
Tue Oct 09, 2018 8:20 pm
Forum: Investing - Help with Personal Investments
Topic: Buying right before a dividend and capital gain distributions
Replies: 6
Views: 1183

Re: Buying right before a dividend and capital gain distributions

For a typical distribution, there is little benefit for waiting, and it probably isn't worth waiting too long. Consider a fund like Vanguard Total Stock Market, which distributes about a 2% qualified dividend annually, or 0.5% per quarter. In a typical tax bracket, the tax cost is 0.08%, which is $8...