Search found 1969 matches

by Chip
Sun Apr 22, 2018 10:29 am
Forum: Investing - Help with Personal Investments
Topic: My taxable account is banged up. Need some help!
Replies: 11
Views: 930

Re: My taxable account is banged up. Need some help!

Don't worry, you haven't done any damage. If you realize the loss on the bonds now and buy back similar but not identical bonds in your IRA you are in the same net position but you'll get to claim the loss on your taxes. It's a win! Just be aware of wash sale rules so you actually get to deduct the ...
by Chip
Sun Apr 22, 2018 10:23 am
Forum: Investing - Theory, News & General
Topic: Boglehead Philosophy Open To Change?
Replies: 111
Views: 4971

Re: Boglehead Philosophy Open To Change?

In my case I plan on not liquidating the portfolio & living off of dividends. So, I don't have to be concerned with the Trinity 4% rule. Once my portfolio is large enough to support myself I can live off of dividends forever without having to liquidate anything. That's the goal anyway. By constrain...
by Chip
Sun Apr 22, 2018 8:20 am
Forum: Investing - Help with Personal Investments
Topic: Which bond fund to choose: Schwab (SWAGX) or Fidelity (FBIDX/FSITX)?
Replies: 7
Views: 491

Re: Which bond fund to choose: Schwab (SWAGX) or Fidelity (FBIDX/FSITX)?

It appears they follow the same index and both have very low expenses, though Fidelity is very slightly higher (.045% vs. .04%). I'd choose whichever one was most convenient.

I like the fact that you have 100% G fund in the TSP. I wish I had access to it.
by Chip
Sun Apr 22, 2018 8:15 am
Forum: Investing - Help with Personal Investments
Topic: MorningStar model portfolio - feedback
Replies: 5
Views: 472

Re: MorningStar model portfolio - feedback

As Svensk Anga points out, putting active funds and bond funds in a taxable account is a recipe for higher taxes. Since you have a 401k and IRA your best options for a taxable account would be total market funds, both domestic and international. Note that in the last paragraph of the article advocat...
by Chip
Sun Apr 22, 2018 8:00 am
Forum: Investing - Help with Personal Investments
Topic: What To Do With Active Funds
Replies: 7
Views: 546

Re: What To Do With Active Funds

Chip, in terms of the cap gains distribution, I thought that was only an issue if I continued to hold the funds, because if I sell them there won’t be any cap gains (from those funds) to distribute to me in the future. My thinking was I’d pay a one time cap gains tax on the $9K. But maybe I don’t u...
by Chip
Sun Apr 22, 2018 6:13 am
Forum: Investing - Help with Personal Investments
Topic: Help evaluate portfolio & retirement plan
Replies: 5
Views: 579

Re: Help evaluate portfolio & retirement plan

@Chip- I didn't know about the dividend trap, I'll need to educate myself more on this, thanks for the alert. Taking SS later to max Roth laddering makes sense. Immediate steps for us then: 1. Move bonds out of his taxable (there's some loss we can harvest) 2. Move stuff out of the blended target f...
by Chip
Sat Apr 21, 2018 3:26 pm
Forum: Investing - Help with Personal Investments
Topic: Help evaluate portfolio & retirement plan
Replies: 5
Views: 579

Re: Help evaluate portfolio & retirement plan

Hi, and welcome! I agree with alec's suggestions: Put all the bonds in the 401ks. Sell taxable bond funds that are in your taxable account (they probably will give you a (desirable) capital loss, but check first. The CA muni fund is fine if you can't fit all the bonds in the 401ks but consider not l...
by Chip
Sat Apr 21, 2018 9:24 am
Forum: Investing - Help with Personal Investments
Topic: What To Do With Active Funds
Replies: 7
Views: 546

Re: What To Do With Active Funds

While I agree the desirable outcome would be to sell them all, I would make sure you understand the full tax implications before selling everything. Not only the capital gains you would realize from selling but also the effect on your taxes each year from capital gain distributions. If nothing else ...
by Chip
Fri Apr 20, 2018 1:27 pm
Forum: Personal Finance (Not Investing)
Topic: Wanting to leave Fidelity
Replies: 90
Views: 8566

Re: Wanting to leave Fidelity

^^^Thanks. Footnote 4 on the page I linked COULD have that info, but they chose not to put it there for some reason.
by Chip
Fri Apr 20, 2018 9:04 am
Forum: Personal Finance (Not Investing)
Topic: Wanting to leave Fidelity
Replies: 90
Views: 8566

Re: Wanting to leave Fidelity

FZDXX has a 1 million dollars minimum. Am I missing something? I don't know where you saw $1M. It's 100k minimum . And I could swear that when I bought it last year the minimum was only 10k in an IRA, but I don't see that separate minimum listed now. There are other options besides the FDIC-insured...
by Chip
Fri Apr 20, 2018 7:11 am
Forum: Personal Finance (Not Investing)
Topic: Tax day come and gone.....
Replies: 29
Views: 2905

Re: Tax day come and gone.....

Please do the following as a favor to your fellow desi BH. Make a copy your tax return file. Modify it to change your RE tax bill by half in the software. Compare your tax liability. I suspect you will be surprised (shocked). I wasn't at all shocked to see that my tax bill would have increased by m...
by Chip
Fri Apr 20, 2018 5:24 am
Forum: Personal Consumer Issues
Topic: Factor in evaluating Physicians
Replies: 86
Views: 4417

Re: Factor in evaluating Physicians

My GI doc received 170k. Do I win a prize? :shock:
by Chip
Thu Apr 19, 2018 10:56 am
Forum: Investing - Help with Personal Investments
Topic: Please help with fund reallocation to include international index fund without tax implication
Replies: 2
Views: 193

Re: Please help with fund reallocation to include international index fund without tax implication

One way would be to swap about 12% of the 16% in the S&P fund in your old 401k for the developed market index. Then buy 4% of the Vanguard emerging markets fund in your Roth. You could buy some international small cap, too, but it will be such a small allocation at market weight it's probably not wo...
by Chip
Thu Apr 19, 2018 8:01 am
Forum: Personal Finance (Not Investing)
Topic: Wanting to leave Fidelity
Replies: 90
Views: 8566

Re: Wanting to leave Fidelity

Vanguard tried the transfer when the $150.01 showed as "Available to Trade". Fidelity rejected it because the funds were not yet in the account, just showing as available. Fidelity refuses to admit when they are wrong, and now says I should simply contact them next Friday to keep the account open. ...
by Chip
Thu Apr 19, 2018 5:07 am
Forum: Personal Consumer Issues
Topic: Total Cost of Car Ownership over 10 years
Replies: 40
Views: 3157

Re: Total Cost of Car Ownership over 10 years

I agree with other posters that maintenance $ are low in your estimate. I had a '98 Camry that went 243k/15 years and spent 5.7k on maintenance (including tires, oil changes, etc.). But that was almost all DIY. I had much lower insurance costs, but of course that is very situation dependent. And my ...
by Chip
Wed Apr 18, 2018 3:34 am
Forum: Personal Finance (Not Investing)
Topic: Avoiding IRS hassle: Form 4868 and miscategorized EFTPS payment
Replies: 3
Views: 422

Re: Avoiding IRS hassle: Form 4868 and miscategorized EFTPS payment

I decided to do the $1 "extension" payment via EFTPS, which allowed me to avoid filing a paper 4868.

I am thinking I will treat the ETFPS "payment with return" as an extra estimated payment when I ultimately file. If I get some kind of notice I'll deal with the IRS phone system at that point.
by Chip
Wed Apr 18, 2018 3:16 am
Forum: Investing - Help with Personal Investments
Topic: Too Many Options: IRA, i401k, 403b, 457b. What to do?
Replies: 8
Views: 689

Re: Too Many Options: IRA, i401k, 403b, 457b. What to do?

I like your plan of using tax-deferred contributions to get you into the 12% bracket, then contributing the rest of your savings to Roth vehicles.

I wouldn't change a thing.
by Chip
Tue Apr 17, 2018 4:03 pm
Forum: Personal Finance (Not Investing)
Topic: Yet another CP2000 for Roth IRA conversion thread
Replies: 10
Views: 743

Re: Yet another CP2000 for Roth IRA conversion thread

I submitted the return by mail. I checked my copy of the mailed return and it definitely had both 8606s included. It would certainly explain the issue it if the IRS didn't enter the 8606s as part of the return. But I can't imagine why on earth that they would not. I'm sure pages of returns get lost...
by Chip
Tue Apr 17, 2018 7:49 am
Forum: Investing - Help with Personal Investments
Topic: Lazy Portfolio - Using Fidelity ETF's Vs Vanguard ETF's
Replies: 29
Views: 2408

Re: Lazy Portfolio - Using Fidelity ETF's Vs Vanguard ETF's

Generally, the FTC can only offset US taxes imposed on foreign source income (FSI). Generally, the FTC does not offset US taxes imposed on US source income. On second thought, I might not get much of a FTC. If all of my FSI is taxed at the 0% capital gains rate, then I will likely get no FTC. It's ...
by Chip
Tue Apr 17, 2018 7:22 am
Forum: Personal Finance (Not Investing)
Topic: Roth conversion timing and ACA subsidies
Replies: 11
Views: 705

Re: Roth conversion timing and ACA subsidies

Further to curmudgeon's point: I wonder if Roth conversions prior to Medicare are a good idea at all in this situation. If you are able to keep your MAGI low enough you will get significant premium tax credits (PTC). And if you are in the range of 100-250% of FPL you are eligible for cost sharing re...
by Chip
Mon Apr 16, 2018 3:26 pm
Forum: Personal Finance (Not Investing)
Topic: Yet another CP2000 for Roth IRA conversion thread
Replies: 10
Views: 743

Re: Yet another CP2000 for Roth IRA conversion thread

So if I have in fact done everything correctly, how to I convince the IRS that I have done it correctly, aside from having done it correctly? What I have done is write a response to the CP2000 that says something to the effect of "We do not agree with any of the IRS-proposed changes to our 2016 For...
by Chip
Mon Apr 16, 2018 1:45 pm
Forum: Personal Finance (Not Investing)
Topic: Yet another CP2000 for Roth IRA conversion thread
Replies: 10
Views: 743

Re: Yet another CP2000 for Roth IRA conversion thread

It does sound like you did everything correctly. It's unfortunate, but sometimes the IRS just screws up.

Just to clarify, are Lines 16 & 17 of each of the 8606s $6,500?
by Chip
Mon Apr 16, 2018 1:30 pm
Forum: Personal Finance (Not Investing)
Topic: Minimizing taxes for 2018
Replies: 12
Views: 1437

Re: Minimizing taxes for 2018

What sort of business expenses are you talking about? If they're on Schedule C aren't they already accounted for in your total income number? If they're itemized employee business expenses that doesn't fit with taking the standard deduction.

???
by Chip
Mon Apr 16, 2018 1:20 pm
Forum: Personal Finance (Not Investing)
Topic: Deductible Medical Expenses....
Replies: 16
Views: 600

Re: Deductible Medical Expenses....

So, if my insurance premiums are employer-based pre-tax, I can add the cost of my contribution to the total? You can't deduct anything that's paid with pre-tax money. So forget about those insurance premiums. Even your share is almost certainly pre-tax. Sorry for the confusion -- I was approaching ...
by Chip
Mon Apr 16, 2018 9:38 am
Forum: Personal Finance (Not Investing)
Topic: Avoiding IRS hassle: Form 4868 and miscategorized EFTPS payment
Replies: 3
Views: 422

Re: Avoiding IRS hassle: Form 4868 and miscategorized EFTPS payment

I took a chance and called the EFTPS help line to see if they could recategorize the payment. The good news: I got right through to a human. The bad news: She couldn't recategorize the payment. She didn't have any useful information. She suggested I call the main IRS number in 10 business days and g...
by Chip
Mon Apr 16, 2018 9:18 am
Forum: Personal Finance (Not Investing)
Topic: Is capital gains paid at the state level as well?
Replies: 8
Views: 390

Re: Is capital gains paid at the state level as well?

It depends on your state. Many (most?) start with Federal AGI, which includes capital gains, and therefore tax capital gains at your full state tax rate.
by Chip
Mon Apr 16, 2018 8:51 am
Forum: Personal Finance (Not Investing)
Topic: Deductible Medical Expenses....
Replies: 16
Views: 600

Re: Deductible Medical Expenses....

As jebmke said, 7.5% for 2017. It was 10% for 65 or under but the TCJA lowered it retroactively. I don't think it's audit bait at all. We complete quite a few returns as TaxAide volunteers with significant medical expenses and I don't recall hearing about an audit for any of them. I have taken them ...
by Chip
Mon Apr 16, 2018 8:17 am
Forum: Personal Finance (Not Investing)
Topic: Avoiding IRS hassle: Form 4868 and miscategorized EFTPS payment
Replies: 3
Views: 422

Avoiding IRS hassle: Form 4868 and miscategorized EFTPS payment

Small problem here. I would appreciate advice on how to proceed to avoid having to call the IRS in the future. I expected to file my return on time and scheduled an EFTPS payment categorized as "Payment with Return, Notice, or Installment Agreement". That payment is being made today and can't be can...
by Chip
Mon Apr 16, 2018 6:48 am
Forum: Investing - Help with Personal Investments
Topic: Please help with overall investment plan for retirement
Replies: 5
Views: 696

Re: Please help with overall investment plan for retirement

Hi, and welcome! It's difficult to give much advice because we can't tell what the relative sizes of those accounts are. It will take some work, but it would help immensely if you will edit your post (use the pencil icon) to show the percentage each fund represents of your total portfolio, rather th...
by Chip
Sun Apr 15, 2018 2:26 pm
Forum: Personal Consumer Issues
Topic: Is it necessary to replace brake fluid on a car every 3 years?
Replies: 56
Views: 3845

Re: Is it necessary to replace brake fluid on a car every 3 years?

Is there a significant chance of breaking off the bleeder screw on a high mileage car? Would like to follow your suggestion but don't want to cause a problem. As lazydavid noted, probably not too much chance of breaking it off. But there is a reasonable likelihood of rounding off the wrench flats o...
by Chip
Sun Apr 15, 2018 11:00 am
Forum: Personal Consumer Issues
Topic: Is it necessary to replace brake fluid on a car every 3 years?
Replies: 56
Views: 3845

Re: Is it necessary to replace brake fluid on a car every 3 years?

I have an Accord and I am changing fluid based on the owner's manual recommendations. I had a Camry, which had no recommendation on replacing brake fluid. After 9 years, with one fluid change at 5 years, the right front caliper froze up due to corrosion. This caused rapid wear on the left front brak...
by Chip
Sun Apr 15, 2018 10:40 am
Forum: Personal Finance (Not Investing)
Topic: Form 1116 3b
Replies: 9
Views: 410

Re: Form 1116 3b

I haven't used TurboTax in several years, but it at least used to handle charitable contributions in a way which was legal but inferior to the taxpayer. It lumped charitable contributions in with other deductions not directly related to either US or foreign income. The IRS allows you to treat chari...
by Chip
Sun Apr 15, 2018 10:22 am
Forum: Investing - Help with Personal Investments
Topic: Lazy Portfolio - Using Fidelity ETF's Vs Vanguard ETF's
Replies: 29
Views: 2408

Re: Lazy Portfolio - Using Fidelity ETF's Vs Vanguard ETF's

I also assume I would get most if not all of the FTC for federal. The state tax is also before considering any FTC subtraction modification. Calculation 1 produces the best answer in year 1. Who knows about future years. You are doing a great job of considering all the angles. With your first examp...
by Chip
Sat Apr 14, 2018 1:55 pm
Forum: Investing - Help with Personal Investments
Topic: Which fidelity funds?
Replies: 29
Views: 1701

Re: Which fidelity funds?

I already know how I’m going to save. I have between 5-7k going into my brokerage account each month. I know I’ll invest in index funds but need to find out which ones I don’t want to figure out how I’ll spend the money. I just want to know I have it in case I need it. We possibly have two large in...
by Chip
Sat Apr 14, 2018 1:41 pm
Forum: Investing - Help with Personal Investments
Topic: Lazy Portfolio - Using Fidelity ETF's Vs Vanguard ETF's
Replies: 29
Views: 2408

Re: Lazy Portfolio - Using Fidelity ETF's Vs Vanguard ETF's

Thanks Chip. I thought ITOT would be more appropriate for the taxable account and wanted to keep it simple and start with just one position in that account. Do you think I should put some IXUS in the taxable account? Or only IXUS? Thanks. As retiredjg notes, there are reasons to put international i...
by Chip
Sat Apr 14, 2018 7:59 am
Forum: Personal Finance (Not Investing)
Topic: HELP - IRS says I owe close to $12,000 for 2016 taxes
Replies: 26
Views: 4311

Re: HELP - IRS says I owe close to $12,000 for 2016 taxes

You may be able to dig up some historical information to limit the amount of reconstruction you have to do. Though I suspect you'll have to pay for it. From the JCI web site : Historical Account Information Johnson Controls does not have access to or the ability to provide historical account informa...
by Chip
Sat Apr 14, 2018 7:31 am
Forum: Personal Finance (Not Investing)
Topic: Form 1116 3b
Replies: 9
Views: 410

Re: Form 1116 3b

Interesting; I looked at my draft returns in HRB. I don't have an IRA deduction but I do have an HSA deduction. HRB does not put this on 3b. The example in the F1116 instructions mentions the Alimony adjustment. Just for fun I put a hypothetical HSA contribution, educator expenses, deduction for SE...
by Chip
Sat Apr 14, 2018 4:35 am
Forum: Personal Finance (Not Investing)
Topic: IRS PIN failure
Replies: 2
Views: 423

Re: IRS PIN failure

Are you using a PIN issued in 2017? You should receive a new one each year. The old one won't work.
by Chip
Sat Apr 14, 2018 4:34 am
Forum: Investing - Help with Personal Investments
Topic: Which fidelity funds?
Replies: 29
Views: 1701

Re: Which fidelity funds?

Sam1 wrote:
Fri Apr 13, 2018 7:04 pm
A plan for what exactly??

What process?
A plan for how you're going to save, invest and ultimately spend that money. Try this link:

https://www.bogleheads.org/wiki/Getting_started
by Chip
Sat Apr 14, 2018 4:23 am
Forum: Investing - Help with Personal Investments
Topic: Lazy Portfolio - Using Fidelity ETF's Vs Vanguard ETF's
Replies: 29
Views: 2408

Re: Lazy Portfolio - Using Fidelity ETF's Vs Vanguard ETF's

I think you've done a fine job and those are appropriate choices. Though I agree with others that IXUS is preferred over IEFA. I also agree with the thought that if you want a Vanguard ETF, $5 per trade is nothing in the whole scheme of things. Why did you decide to put international in tax-deferred...
by Chip
Sat Apr 14, 2018 4:10 am
Forum: Personal Finance (Not Investing)
Topic: Form 1116 3b
Replies: 9
Views: 410

Re: Form 1116 3b

It may seem like a flippant answer, but your statement should just list the other deductions and amounts that you put on that line. TT will account for your itemized deductions elsewhere on the form. So 3b is likely to be where you put adjustments to income that are on Lines 23-35 of Form 1040. For ...
by Chip
Sat Apr 14, 2018 3:43 am
Forum: Investing - Help with Personal Investments
Topic: How to find annual fee charged by Vanguard & Fidelity
Replies: 4
Views: 657

Re: How to find annual fee charged by Vanguard & Fidelity

A new disclosure law, effective June 9 2017, requires brokerage firms to disclose fees they charge their clients. Investors can claim these fees as miscellaneous deduction on schedule A, subjected to 2% AGI. Does anyone know how to find these fees on Vanguard and Fidelity websites? Note that the ne...
by Chip
Fri Apr 13, 2018 3:14 pm
Forum: Personal Finance (Not Investing)
Topic: DAF question
Replies: 18
Views: 1139

Re: DAF question

The IRS is looking at this particular issue and also whether or not a DAF can be used to pay an existing legally enforceable pledge. They issued Notice 2017-73 last year which summarizes the issues, including public comments they received. Thanks for that link. After a quick scan it appears the IRS...
by Chip
Fri Apr 13, 2018 12:37 pm
Forum: Investing - Help with Personal Investments
Topic: LTC Loss - this year or next?
Replies: 2
Views: 344

Re: LTC Loss - this year or next?

If you take the loss this year the first 1k of your LT capital loss will offset the 1k LT capital gain. The next 2k of the loss will offset the 2k of ST capital gain. The remaining 1k will appear as a negative number on Line 13 of your 1040 and will offset other ordinary income. You can see how this...
by Chip
Fri Apr 13, 2018 12:27 pm
Forum: Investing - Help with Personal Investments
Topic: Why traditional IRA better than Roth IRA
Replies: 87
Views: 6746

Re: Why traditional IRA better than Roth IRA

A law is not a contract. It can be changed at any time, one party (the legislator, that is) can rip it up and rewrite it at any time, no correction is available through the court system. Absolutely. Real estate passive losses were immediately deductible against other ordinary income by nearly all i...
by Chip
Fri Apr 13, 2018 11:17 am
Forum: Personal Finance (Not Investing)
Topic: DAF question
Replies: 18
Views: 1139

Re: DAF question

It's just not allowed for a donation from a DAF. If you were donating after tax funds you can't deduct the FMV of any benefits your receive in return for your donation. For example, public radio often offers a "free" CD set of something or other when donating $200. They provide a letter saying that ...
by Chip
Fri Apr 13, 2018 11:07 am
Forum: Investing - Theory, News & General
Topic: Vanguard dominating first quarter
Replies: 16
Views: 2515

Re: Vanguard dominating first quarter

The 10 largest mutual fund providers took in about $74 billion during a volatile first quarter. Vanguard assumed the bulk of those inflows, with $39 billion in net new money. Vanguard is continuing to dominate. There needs to be consolidation soon. I wonder if my purchases of Vanguard ETFs at Fidel...
by Chip
Thu Apr 12, 2018 2:56 pm
Forum: Personal Finance (Not Investing)
Topic: Roth Conversion Strategy post TCJA
Replies: 9
Views: 749

Re: Roth Conversion Strategy post TCJA

I think everything in the article was covered in this thread on bogleheads, nearly 4 months ago!

Maybe Kitces is reading this site to get ideas for his blog. :P
by Chip
Thu Apr 12, 2018 2:17 pm
Forum: Personal Finance (Not Investing)
Topic: [Help completing the TN state tax return]
Replies: 73
Views: 2225

Re: Can you go back and forth in the future between filing taxes as married jointly or separately?

The web site is wrong. You can switch back & forth from MFJ to MFS yearly if you like as long as you qualify as married.

One thing you can't do is AMEND a jointly filed return to a separately filed return. Perhaps that's what the blogger meant to say and completely botched it.
by Chip
Thu Apr 12, 2018 5:57 am
Forum: Personal Finance (Not Investing)
Topic: In Backdoor Roth IRA tax reporting [problems] - please help
Replies: 2
Views: 249

Re: In Backdoor Roth IRA tax reporting [problems] - please help

First, the only thing you did in 2018 that applies to your 2017 return is the $4500 recharacterization of your 2017 Roth contribution. The remainder of the things you did apply to your 2018 tax return and will be reported there. You should be able to tell your tax software that you made a 4,500 cont...