Search found 2180 matches

by Chip
Sun Sep 16, 2018 4:58 pm
Forum: Personal Finance (Not Investing)
Topic: SEC Settlement Distribution - Tax Implications?
Replies: 9
Views: 448

Re: SEC Settlement Distribution - Tax Implications?

Gill wrote:
Sun Sep 16, 2018 4:04 pm
Which way?
Gill
The way you suggested, as a LT capital gain in the year received. The ^^ was supposed to be a pointer to your message, right above mine. :beer
by Chip
Sun Sep 16, 2018 3:56 pm
Forum: Personal Finance (Not Investing)
Topic: SEC Settlement Distribution - Tax Implications?
Replies: 9
Views: 448

Re: SEC Settlement Distribution - Tax Implications?

^^ I have always reported settlements this way in similar situations.
by Chip
Sat Sep 15, 2018 6:03 am
Forum: Investing - Theory, News & General
Topic: 2017 Relative Tax Efficiency
Replies: 94
Views: 15334

Re: 2017 Relative Tax Efficiency

Sounds like a good theory to explain this anomaly. If it is true, the Fidelity zero funds being brand new may have similar tax efficient beginnings for the next few years. If they don't have any unexpected tracking problems they may be the most efficient funds for awhile. That sounds like a reasona...
by Chip
Fri Sep 14, 2018 3:27 pm
Forum: Investing - Help with Personal Investments
Topic: Updated Asset Allocation and Fund Placement
Replies: 9
Views: 875

Re: Updated Asset Allocation and Fund Placement

1. Any suggestions/changes on my updated asset allocation for a mid-30's investor? 2. Is my fund placement optimized within my accounts? 3. I was planning to divide international funds into 65% MSCI EAFE, 20% emerging, 15% small cap. Is this reasonable? I agree that AA and placement look good. Your...
by Chip
Fri Sep 14, 2018 10:14 am
Forum: Personal Finance (Not Investing)
Topic: Leasing Cars in Retirement
Replies: 80
Views: 5679

Re: Leasing Cars in Retirement

Frisco Kid wrote:
Fri Sep 14, 2018 10:05 am
All purchases in our case would trigger a large taxable event, looking at how leasing might offset that or not......
Not if you take out a loan.
by Chip
Fri Sep 14, 2018 10:07 am
Forum: Personal Finance (Not Investing)
Topic: Traditional to Roth conversion
Replies: 9
Views: 696

Re: Traditional to Roth conversion

Thanks. I haven't been keeping records up to this point but I guess I should at least be downloading a copy of the year end statement once a year. Look on your broker's web site to see if you have access to your prior year Forms 5498. These have records of your contributions and conversions. My bro...
by Chip
Fri Sep 14, 2018 7:27 am
Forum: Investing - Theory, News & General
Topic: 2017 Relative Tax Efficiency
Replies: 94
Views: 15334

Re: 2017 Relative Tax Efficiency

this is a very interesting thread, for my 3 fund taxable portfolio I've was deciding between FTIPX and IXUS. Most of what I read on this forum and the Wiki pointed me towards IXUS in my taxable account because of the tax benefit of ETF vs regular Mutual Fund (not counting Vanguard). This sheet calc...
by Chip
Mon Sep 10, 2018 11:05 am
Forum: Personal Consumer Issues
Topic: What performance to expect from central AC?
Replies: 35
Views: 2348

Re: What performance to expect from central AC?

I'm not sure what the answer is but having the basement open to the main floor significantly changes the calculations and they need to be aware of it. Very true. We had friends with a ranch/finished basement with a huge opening to the basement (6 ft wide open stairway). The upstairs got a lot of af...
by Chip
Sun Sep 09, 2018 1:55 pm
Forum: Personal Consumer Issues
Topic: Run Air Conditioner even if not needed?
Replies: 30
Views: 2997

Re: Run Air Conditioner even if not needed?

You must have an electricity guzzling fan! My blower uses about 40 watts when in the Fan On setting, and nothing else is running. That’s less than a lot of cable tv boxes on standby. I do. As I mentioned earlier, my system is 30 years old so the fan motor is a permanent split capacitor (PSC) design...
by Chip
Sun Sep 09, 2018 10:26 am
Forum: Personal Consumer Issues
Topic: Run Air Conditioner even if not needed?
Replies: 30
Views: 2997

Re: Run Air Conditioner even if not needed?

My comment about $/kwh was strictly directed at your absurd statement about it was costing me $20/month. Running the fan during the summer helps circulate the cool air and make my home more comfortable at the temperature setting I chose for my A/C. Let's let it at that shall we? I'll be happy to le...
by Chip
Sun Sep 09, 2018 9:47 am
Forum: Personal Consumer Issues
Topic: Run Air Conditioner even if not needed?
Replies: 30
Views: 2997

Re: Run Air Conditioner even if not needed?

I guess you must be paying a lot more per KW hour than me. My entire electric bill for Jun 29 - July 31 (32 days) was $101.66 in Charlotte NC with the A/C running the entire month - no way my A/C fan contributed 20% of the cost. Hot water and furnace are gas but all my appliances are electric. This...
by Chip
Sun Sep 09, 2018 6:49 am
Forum: Personal Consumer Issues
Topic: Cell phone tip: block callers
Replies: 50
Views: 6777

Re: Cell phone tip: block callers

I'd hate to give up on lots of things my smartphone can do: Take a picture and text it to someone. Google something. Read/send email. Deposit a check. Look at bank account. Look at and add to appointment calendar. Lots of other things... I know nothing about Tracfones. Can they do those things? Tra...
by Chip
Sat Sep 08, 2018 1:04 pm
Forum: Personal Consumer Issues
Topic: Attic Insulation Over Plywood Floor?
Replies: 10
Views: 1136

Re: Attic Insulation Over Plywood Floor?

I'm inclined to go forward with the Fiberglas batts given that 75% of the cost is being picked up by the utility company unless folks here think the Fiberglas install is grossly inferior to the blown in insulation. The energy audit is estimating a cost savings in heating costs of about $250/year ba...
by Chip
Sat Sep 08, 2018 12:56 pm
Forum: Personal Consumer Issues
Topic: Run Air Conditioner even if not needed?
Replies: 30
Views: 2997

Re: Run Air Conditioner even if not needed?

Can you turn the fan on separately from the A/C? If so, I would leave the fan running to keep air circulating. My HVAC contractor recommends keeing the fan on all the time during the summer months. Your HVAC contractor doesn't have to pay your electric bill. That fan uses a fair amount of energy --...
by Chip
Sat Sep 08, 2018 12:50 pm
Forum: Personal Consumer Issues
Topic: Run Air Conditioner even if not needed?
Replies: 30
Views: 2997

Re: Run Air Conditioner even if not needed?

But yep, run it every other day for an hour to keep the coolant flowing and the motors from atrophying. It's like a whole house generator that needs to go into exercise mode each week. I strongly disagree. Do you run yours every other day year round? I certainly don't and mine has lasted 30 years a...
by Chip
Sat Sep 08, 2018 8:21 am
Forum: Personal Consumer Issues
Topic: Buy a house that needs full renovation?
Replies: 40
Views: 1659

Re: Buy a house that needs full renovation?

If I was the seller and you did that to me, I'd terminate the house sale process and seek financial damages. It isn't reasonable to offer >$250K, then get cold feet and demand a 20% price concession! Based on the results of the inspection, and assuming there was an inspection contingency, it doesn'...
by Chip
Wed Sep 05, 2018 12:27 pm
Forum: Investing - Theory, News & General
Topic: PDN and FNDC Huge Volumes today [RAFI Dev Mkts ex-U.S. small-mid, Schwab Fundamental Int'l small]
Replies: 6
Views: 614

Re: PDN and FNDC Huge Volumes today

Good question. FNDF is also at about 10x average volume.
by Chip
Mon Sep 03, 2018 1:26 pm
Forum: Investing - Theory, News & General
Topic: Does it make sense to invest in individual stocks (like Kanye West) if you stick to what you know?
Replies: 110
Views: 5539

Re: Does it make sense to invest in individual stocks if you stick to what you know?

I mean suppose you're a doctor or a surgeon. The guy actively managing the big Fidelity fund will know much less than you about drugs and stuff like that; he will hold 50 or perhaps 100 stocks in his portfolio in all sorts of fields and he's an expert in none of them. Thanks to your specialised pro...
by Chip
Mon Sep 03, 2018 1:01 pm
Forum: Investing - Theory, News & General
Topic: Does it make sense to invest in individual stocks (like Kanye West) if you stick to what you know?
Replies: 110
Views: 5539

Re: Does it make sense to invest in individual stocks if you stick to what you know?

It's a bad idea. The question you should ask is what do you know that the professionals in the market don't.

The answer is NOTHING.

You seem to be looking for a magic bullet. There isn't one unless you can somehow make yourself very lucky. If that's the case, then just buy a lottery ticket.
by Chip
Mon Sep 03, 2018 12:19 pm
Forum: Investing - Help with Personal Investments
Topic: Portfolio Review and Commentary? (Mid-7 figures.)
Replies: 18
Views: 1582

Re: Portfolio Review and Commentary? (Mid-7 figures.)

As you know, there are no obvious problems with what you've done so far. Nothing is broken. You've shown you can handle the downside without coming close to blinking. :beer If it makes you feel any better, there are many here with similar small value tilts. So I think it's a question only you can an...
by Chip
Sun Sep 02, 2018 11:03 am
Forum: Personal Consumer Issues
Topic: Wet & Forget for roof algae?
Replies: 13
Views: 1803

Re: Wet & Forget for roof algae?

I haven't used it on a roof, but it is a recommended use on the label. I would do it. I personally wouldn't worry about the yard. When I used it on my driveway (after learning about W&F here) there was no effect on the grass adjacent to the driveway. There were some plants next to the driveway that ...
by Chip
Sun Sep 02, 2018 10:06 am
Forum: Personal Finance (Not Investing)
Topic: Responding to IRS CP2000 notice for backdoor Roth - new 8606 or not?
Replies: 30
Views: 1595

Re: Responding to IRS CP2000 notice for backdoor Roth - new 8606 or not?

After having the experience of having something mailed in the same envelope "get lost" by state tax authorities, my inclination would be to go with your 3. Each separate tax year gets mailed in its own envelope with its own cover letter. Yes, it's a little more hassle and a little more expense, but ...
by Chip
Sat Sep 01, 2018 12:46 pm
Forum: Personal Finance (Not Investing)
Topic: Responding to IRS CP2000 notice for backdoor Roth - new 8606 or not?
Replies: 30
Views: 1595

Re: Responding to IRS CP2000 notice for backdoor Roth - new 8606 or not?

jacoavlu wrote:
Sat Sep 01, 2018 11:52 am
Do people actually use the term “backdoor Roth” in communications with the IRS? For all of us of course this term clearly and concisely communicates the specific transaction.
No. To the IRS it is a non-deductible traditional IRA contribution followed by a conversion of that tIRA to a Roth IRA.
by Chip
Sat Sep 01, 2018 10:31 am
Forum: Personal Finance (Not Investing)
Topic: Responding to IRS CP2000 notice for backdoor Roth - new 8606 or not?
Replies: 30
Views: 1595

Re: Responding to IRS CP2000 notice for backdoor Roth - new 8606 or not?

Well I’m a little more proud of myself this morning, I thought I had previously checked my 2017 8606 with it being the same as the rest (6-12 blank, part II not completed) but checking just now I managed to stumble through the TurboTax questions correctly because part II is completed. All the prior...
by Chip
Sat Sep 01, 2018 5:02 am
Forum: Personal Finance (Not Investing)
Topic: Responding to IRS CP2000 notice for backdoor Roth - new 8606 or not?
Replies: 30
Views: 1595

Re: Responding to IRS CP2000 notice for backdoor Roth - new 8606 or not?

yeah I have considered that exact question... and I don’t know the answer. Hence, this thread. Which of course yields two different answers. I don't know if you've read this thread (since it doesn't have CP2000 in the title), but it covers much of what you're questioning in great detail. Plus there...
by Chip
Fri Aug 31, 2018 2:46 pm
Forum: Investing - Theory, News & General
Topic: Portfolio Construction: Total World Stock + TIPS or Treasuries
Replies: 40
Views: 3242

Re: Portfolio Construction: Total World Stock + TIPS or Treasuries

I prefer B. One of the main reasons is that TIPS haven't had the liquidity of nominal Treasuries in financial panics. My experience in 2008/9 was that stocks were crashing but so were TIPS. I needed nominal Treasuries (which I didn't have) to buy both for rebalancing purposes. Before that event I wa...
by Chip
Fri Aug 31, 2018 2:10 pm
Forum: Personal Finance (Not Investing)
Topic: Responding to IRS CP2000 notice for backdoor Roth - new 8606 or not?
Replies: 30
Views: 1595

Re: Responding to IRS CP2000 notice for backdoor Roth - new 8606 or not?

I had a CPA do my tax return. He completed the 8606 seemingly the same way turbotax often does, with lines 6-12 blank, part II beyond line 15 not completed, and an asterisk included on lines 13 and 15 and "*From worksheet in Publication 590-B" added at the bottom of the form. As an aside, form 8606...
by Chip
Fri Aug 31, 2018 1:52 pm
Forum: Investing - Help with Personal Investments
Topic: What to do with individual stocks?
Replies: 8
Views: 1088

Re: What to do with individual stocks?

I will try to dig up as much info as possible and get back. The biggest issue that I foresee is that we don't have much documentation of cost basis. The stocks are held at Ameriprise and the website doesn't show a cost basis for probably 90% of the holdings. In terms of the 401K I see what you are ...
by Chip
Fri Aug 31, 2018 10:10 am
Forum: Investing - Help with Personal Investments
Topic: What to do with individual stocks?
Replies: 8
Views: 1088

Re: What to do with individual stocks?

Hi, and welcome! It looks like you are off to a great start. Consider switching your contributions from the Roth 401k to traditional 401k. If you do that, and max out the contribution (18.5k less Roth 401k contributions already made), you will probably drop yourself well down into the 12% tax bracke...
by Chip
Thu Aug 30, 2018 1:11 pm
Forum: Investing - Theory, News & General
Topic: Expense ratios and fees - Fidelity and flip flopping advice
Replies: 61
Views: 4240

Re: Expense ratios and fees - Fidelity and flip flopping advice

So how does it all work out in comparison to say an effective boost of the ER? I will owe the cap gains+state+AMT?+NIT? tax on the Fido 0.6%, but if I'm re-investing earnings the cost basis of the FTSVX will grow and that of VTSAX doesn't. I can see that happening in the statements. If I ever sell ...
by Chip
Thu Aug 30, 2018 8:34 am
Forum: Investing - Theory, News & General
Topic: 2017 Relative Tax Efficiency
Replies: 94
Views: 15334

Re: 2017 Relative Tax Efficiency

QDI and Distributions information is found on individual fund providers pages. This varies from fund provider to fund provider, of course. I looked at the spreadsheet this morning and noticed that the numbers for FSTVX are still marked as estimated. Here are the numbers from my 1099-DIV: .00369/sha...
by Chip
Thu Aug 30, 2018 6:26 am
Forum: Investing - Theory, News & General
Topic: Expense ratios and fees - Fidelity and flip flopping advice
Replies: 61
Views: 4240

Re: Expense ratios and fees - Fidelity and flip flopping advice

What are the reasons they aren't ideal for taxable? I have seen some speculation in other posts that they "may" have more tax drag, vanguard has a magical patent that might give them less tax drag than these funds, etc - but nothing yet that has proven this. Since they are starting with zero assets...
by Chip
Mon Aug 27, 2018 6:02 am
Forum: Investing - Help with Personal Investments
Topic: Portfolio (and General) Advice Requested - New to the Game
Replies: 6
Views: 786

Re: Portfolio (and General) Advice Requested - New to the Game

Assuming I put my entire bond allocation in the 401k, that would leave me with $12,600 remaining in the 401k. VINIX still seems like the best fund in my 401k in which to put these funds. Doing so would max my 401k allocation, and leave me with $3,625 to complete my U.S. stock allocation (55%). How ...
by Chip
Sun Aug 26, 2018 1:35 pm
Forum: Investing - Help with Personal Investments
Topic: Newly retired - need to make a big change
Replies: 51
Views: 10049

Re: Newly retired - need to make a big change

I used the annualized distribution yield as it reflects actual cash income to the investor, as opposed to "hypothetical" income in SEC yield. SEC yield is far from hypothetical and is a standardized way of comparing bond funds. If you don't believe that, imagine a 10 year premium bond which pays 5%...
by Chip
Sun Aug 26, 2018 7:50 am
Forum: Investing - Help with Personal Investments
Topic: Portfolio (and General) Advice Requested - New to the Game
Replies: 6
Views: 786

Re: Portfolio (and General) Advice Requested - New to the Game

Welcome to the forum! My spouse's loan balance is $146k.[...] This leads to a fundamental question: does it make sense to max out retirement accounts (described below) while making payments on this loan? Yes. If I read your post correctly, you have 79k/year available. I would throw all of this at yo...
by Chip
Sat Aug 25, 2018 12:22 pm
Forum: Personal Finance (Not Investing)
Topic: Is this a good resource for SS or is there something better
Replies: 12
Views: 1236

Re: Is this a good resource for SS or is there something better

Luckygirl wrote:
Sat Aug 25, 2018 11:40 am
Is Pipers book up to date with new spousal claiming rules. Looks like last version is 2017
Yes.
by Chip
Sat Aug 25, 2018 11:02 am
Forum: Personal Finance (Not Investing)
Topic: Question for Social Security experts
Replies: 13
Views: 1696

Re: Question for Social Security experts

^^ File and suspend is no longer available for anyone.
by Chip
Sat Aug 25, 2018 9:32 am
Forum: Personal Finance (Not Investing)
Topic: Question for Social Security experts
Replies: 13
Views: 1696

Re: Question for Social Security experts

Not an expert, but you can't do what you proposed. The restricted application would be for YOU to claim a spousal benefit based on your wife's work record, then allowing your delayed retirement credits to accumulate. For that to happen she would have to file for her own benefit, to which you have sa...
by Chip
Sat Aug 25, 2018 4:34 am
Forum: Investing - Help with Personal Investments
Topic: Newly retired - need to make a big change
Replies: 51
Views: 10049

Re: Newly retired - need to make a big change

Unfortunately, none of the intermediate to long term bond funds have done well in 2018, during this period of rising interest rates. Additionally, with the recent (and continuing) increases to short-term rates by the Federal Reserve, the spread between short-term rates (like VMMXX) and the bond fun...
by Chip
Sat Aug 25, 2018 4:28 am
Forum: Investing - Help with Personal Investments
Topic: Newly retired - need to make a big change
Replies: 51
Views: 10049

Re: Newly retired - need to make a big change

I do notice the difference in the performance of the US Total Stock Market Index (VTSAX) and the Total International Stock Index (VTIAX) and understand why. I have already planned to cut the percentage of VTIAX because of the volatility. Are you suggesting that it would be a good move to go with a ...
by Chip
Sat Aug 25, 2018 3:18 am
Forum: Investing - Help with Personal Investments
Topic: Strike One, Strike 2, and Now What? Please Help!
Replies: 67
Views: 6676

Re: Strike One, Strike 2, and Now What? Please Help!

At best it's a third-hand account featuring someone who was pretty uncertain to begin with. For all I know, when he went into the office he asked someone to look over the choices and suggest something better. I only care about first-hand accounts. Specifically someone who moved assets over and was ...
by Chip
Fri Aug 24, 2018 4:01 pm
Forum: Personal Consumer Issues
Topic: Mileage efficiency dropping after new tires- Subi
Replies: 7
Views: 521

Re: Mileage efficiency dropping after new tires- Subi

Just the difference between a 3/32" tread and the 10/32" tread of a new tire is worth 1% in indicated mileage, even if actual mileage didn't change. This is due to the increased circumference of the new tire. Also, it's my understanding that tires with a lot of tread have more flexing and squirming ...
by Chip
Fri Aug 24, 2018 1:35 pm
Forum: Investing - Help with Personal Investments
Topic: Strike One, Strike 2, and Now What? Please Help!
Replies: 67
Views: 6676

Re: Strike One, Strike 2, and Now What? Please Help!

That's not the kind of thing we're talking about. We're talking about people who move assets over to the brokerage and have someone there reach and try to convince them to change to some other investment. I most definitely would not use any adviser at these places. If your friend did that, then so ...
by Chip
Fri Aug 24, 2018 7:09 am
Forum: Investing - Help with Personal Investments
Topic: Strike One, Strike 2, and Now What? Please Help!
Replies: 67
Views: 6676

Re: Strike One, Strike 2, and Now What? Please Help!

I have NOT seen reports that many have been approached. Generally the contact will ask if you have needs. If you say no, then that it usually the end. This idea promulgated that these custodians spend a lot of effort to try to steer people into investments isn't what most people who use them report...
by Chip
Thu Aug 23, 2018 11:04 am
Forum: Investing - Theory, News & General
Topic: What to do at 62?
Replies: 52
Views: 5987

Re: What to do at 62?

Running to catch a flight in a few minutes but let me provide a quick response. Yes, this is a simplified model as I stated and I did not paste in my updated spreadsheets due to the difficulties in doing so. I don't think you read all of my posts fully, which have given all the assumptions. Actuall...
by Chip
Thu Aug 23, 2018 6:07 am
Forum: Investing - Theory, News & General
Topic: What to do at 62?
Replies: 52
Views: 5987

Re: What to do at 62?

So, in conclusion, I cannot see the scenario where pulling money forward to do early Roth conversions actually makes sense, from both the loss of growth on portfolio balances due to paying tax earlier and the higher taxes paid in both a nominal and present value sense due to paying tax earlier. You...
by Chip
Wed Aug 22, 2018 3:01 pm
Forum: Personal Finance (Not Investing)
Topic: Umbrella insurance - again
Replies: 34
Views: 2721

Re: Umbrella insurance - again

I'm not sure that much you get here will be useful, as your personal liability exposure matters a great deal, as well as the liability "climate" in your state and locality. I suggest getting multiple quotes to get a better read on things. Or, if you're willing, post more information about your expos...
by Chip
Wed Aug 22, 2018 1:56 pm
Forum: Investing - Help with Personal Investments
Topic: Roth and taxable investment advice needed.
Replies: 1
Views: 273

Re: Roth and taxable investment advice needed.

Hi, and welcome! You should be able to move the Fidelity Destiny Roth account to another custodian of your choosing. Then use the backdoor method to move a non-deductible tIRA contribution into it when not eligible for a regular Roth contribution. You don't need another Roth account. Though obviousl...
by Chip
Sat Aug 18, 2018 3:24 pm
Forum: Investing - Help with Personal Investments
Topic: tIRA bond fund(s)
Replies: 13
Views: 804

Re: tIRA bond fund(s)

I agree with BL. I think most of us here adhere to a relatively fixed stock/bond ratio. So it's okay to have bonds in the Roth as well as in the tIRA. I have been Roth converting for years. Our tIRAs are all bonds but I have to have some bonds in the Roth as well in order to get to my desired stock/...