Search found 869 matches

by JustinR
Mon Jan 21, 2019 6:15 am
Forum: Investing - Theory, News & General
Topic: The Final, Definitive Thread on Brokerage Transfer Bonuses
Replies: 1461
Views: 238821

Re: The Final, Definitive Thread on Brokerage Transfer Bonuses

Damn...looks like the $1000 Merrill Edge offer expired https://www.merrilledge.com/offers/1000offer So these are the ones still active? $900 - https://www.merrilledge.com/offers/900offer $600 - https://www.merrilledge.com/cmaoffer Look for the expiry date. it's April 30th for the $900 offer. Not su...
by JustinR
Mon Jan 21, 2019 6:00 am
Forum: Investing - Help with Personal Investments
Topic: Does anyone have entire 401K in bonds?
Replies: 56
Views: 5383

Re: Does anyone have entire 401K in bonds?

Yes.

401k is the most optimal account to place your bonds (tax-wise), so all of your bonds should ideally be there.

viewtopic.php?f=10&t=242137

Most tax inefficient -> Most tax efficient
401k -> Roth IRA -> Taxable
Bonds -> International -> US
by JustinR
Sun Jan 20, 2019 2:58 am
Forum: Investing - Help with Personal Investments
Topic: Stay the course is hard
Replies: 56
Views: 5119

Re: Stay the course is hard

The more you tinker with your strategy, the more money you'll lose. The investors who make the most money are those who literally forget about their investments and check it years later. So print out " DON'T DO ANYTHING " on a sheet of paper and hang it over your desk. It also might be helpful to ch...
by JustinR
Sun Jan 20, 2019 12:43 am
Forum: Investing - Help with Personal Investments
Topic: Maxing out Roth IRA ASAP vs Monthly
Replies: 11
Views: 885

Re: Maxing out Roth IRA ASAP vs Monthly

You should always invest the money you have available ASAP. This is known as "lump sum" investing. The easiest way to explain this principle is that the market is expected to go up. Imagine a graph that looks like this: / That's the whole reason why we invest. We expect it to go up. So, if that is t...
by JustinR
Sat Jan 19, 2019 2:05 am
Forum: Personal Finance (Not Investing)
Topic: HSA [How do I organize expenses for future reimbursement?]
Replies: 33
Views: 1826

Re: HSA [How do I organize expenses for future reimbursement?]

1. Record every medical expense in a spreadsheet. Including gas for doctor/dentist visits. 2. Scan every receipt/invoice as a PDF. Keep these in a single folder on your hard drive (along with the spreadsheet), and preferably automatically backed up to the cloud like Dropbox. 3. Keep the paper copy (...
by JustinR
Sat Jan 19, 2019 1:46 am
Forum: Personal Consumer Issues
Topic: Strategies to combat or justify lifestyle creep
Replies: 91
Views: 7119

Re: Strategies to combat or justify lifestyle creep

What do you care about more: financial independence or a Tesla? As someone who is also building towards FIRE, I'll be the exception to this thread and advise you to not buy the Tesla. It's not remotely worth it. It's a toy. It won't significantly improve your quality of life or make you that much ha...
by JustinR
Fri Jan 18, 2019 6:59 pm
Forum: Investing - Theory, News & General
Topic: 401K matching and front loading
Replies: 15
Views: 1008

Re: 401K matching and front loading

My company provides at 1:1 match up to 3% and then 0.5% match up to 5%, so to get the largest match you would need 5% to get a 4% match. I always max out the 401K submission, but do it throughout the entire year. I do get (4) larger pay periods (comissions), and I usually tweak the final pay period...
by JustinR
Fri Jan 18, 2019 6:50 pm
Forum: Investing - Theory, News & General
Topic: pros and cons of target date funds?
Replies: 71
Views: 8426

Re: pros and cons of target date funds?

You're correct that you lose the foreign tax credit in tax-advantaged accounts. However, some international funds (such as the typical VG ones) are still less tax efficient even with the foreign tax credit. See the spreadsheet here: https://www.bogleheads.org/forum/viewtopic.php?f=10&t=242137 That'...
by JustinR
Fri Jan 18, 2019 5:13 pm
Forum: Investing - Theory, News & General
Topic: pros and cons of target date funds?
Replies: 71
Views: 8426

Re: pros and cons of target date funds?

- Tax efficiency: By separating out the funds, you can optimize your tax efficiency, such as putting bonds in 401k, international in Roth, total stock market in taxable, etc. You can't do this with a target fund since all three would be in the same fund. I'm curious on you rational behind this? I u...
by JustinR
Fri Jan 18, 2019 5:10 pm
Forum: Investing - Theory, News & General
Topic: pros and cons of target date funds?
Replies: 71
Views: 8426

Re: pros and cons of target date funds?

Tax efficiency: By separating out the funds, you can optimize your tax efficiency, such as putting bonds in 401k, international in Roth, total stock market in taxable, etc. I agree that tax optimization is an argument against target date funds, because it prevents placement to optimize tax efficien...
by JustinR
Fri Jan 18, 2019 4:35 am
Forum: Investing - Theory, News & General
Topic: Around 43K in dividends last year - feel good about it ?
Replies: 160
Views: 13513

Re: Around 43K in dividends last year - feel good about it ?

Dividends are a fact of daily life for any investor. We have to deal with them. That's not what this thread is about. What we're arguing isn't "should investors avoid all funds that give dividends" but rather the more philosophical question "is receiving a dividend good" which the answer is no. Rec...
by JustinR
Thu Jan 17, 2019 2:47 am
Forum: Investing - Theory, News & General
Topic: Rumor mill - Fidelity starting individual HSA's Nov. 15th
Replies: 860
Views: 65367

Re: Rumor mill - Fidelity starting individual HSA's Nov. 15th

ninjab wrote:
Thu Jan 17, 2019 12:42 am
My lively account still shows $50, even though it has been at Fidelity for a few days
Thanks. Yea, wonder what we should do. I'm waiting for it to zero out before closing the Lively account. Wonder if I should message them about it.
by JustinR
Thu Jan 17, 2019 2:45 am
Forum: Investing - Theory, News & General
Topic: Around 43K in dividends last year - feel good about it ?
Replies: 160
Views: 13513

Re: Around 43K in dividends last year - feel good about it ?

We've already established that it's better to sell shares: https://www.bogleheads.org/forum/viewtopic.php?f=10&t=269321&start=100#p4315265 There's literally zero benefits to receiving a dividend. No offense JustinR, but in my opinion, it's not really conclusive to simply point to your own assertion...
by JustinR
Wed Jan 16, 2019 10:15 pm
Forum: Investing - Theory, News & General
Topic: Rumor mill - Fidelity starting individual HSA's Nov. 15th
Replies: 860
Views: 65367

Re: Rumor mill - Fidelity starting individual HSA's Nov. 15th

Ended up checking just now and sure enough, Fidelity account shows the $50.01 posted 1/4/19 (approx 5 business days after the initial transfer posted). All is good :D Same thing happened to me. The $50 is at Fidelity now, but the Lively website still shows $50 in my closed TDA account and says "as ...
by JustinR
Wed Jan 16, 2019 6:34 pm
Forum: Investing - Theory, News & General
Topic: Are mega back door Roth contributions considered contributions?
Replies: 87
Views: 2936

Re: Are mega back door Roth contributions considered contributions?

I see, so in a Roth 401k to Roth IRA rollover, the earnings remain separate from the principle (basically becoming Roth IRA earnings), even though neither is taxed, and can not be withdrawn penalty-free until 59.5. It's interesting that: Trad IRA -> Roth IRA all eligible for early withdrawal After-...
by JustinR
Wed Jan 16, 2019 6:15 pm
Forum: Investing - Theory, News & General
Topic: Are mega back door Roth contributions considered contributions?
Replies: 87
Views: 2936

Re: Are mega back door Roth contributions considered contributions?

It's interesting that: Trad IRA -> Roth IRA all eligible for early withdrawal - this is true for the part you converted; not true for the earnings that occur after the conversion (inside the Roth container). After-tax 401k -> Roth IRA all eligible for early withdrawal this is true for the part you ...
by JustinR
Wed Jan 16, 2019 6:11 pm
Forum: Investing - Theory, News & General
Topic: Are mega back door Roth contributions considered contributions?
Replies: 87
Views: 2936

Re: Are mega back door Roth contributions considered contributions?

I see, so in a Roth 401k to Roth IRA rollover, the earnings remain separate from the principle (basically becoming Roth IRA earnings), even though neither is taxed, and can not be withdrawn penalty-free until 59.5. It's interesting that: Trad IRA -> Roth IRA all eligible for early withdrawal After-...
by JustinR
Wed Jan 16, 2019 5:03 pm
Forum: Investing - Theory, News & General
Topic: Are mega back door Roth contributions considered contributions?
Replies: 87
Views: 2936

Re: Are mega back door Roth contributions considered contributions?

So based on this information, 100% of the funds from a Roth 401k -> Roth IRA conversion would be immediately available for early withdrawal penalty free (no need to wait 5 years). Since none of it (neither principle nor earnings) is taxed during the conversion. Is that correct? Roth 401k to Roth IR...
by JustinR
Wed Jan 16, 2019 4:35 pm
Forum: Investing - Theory, News & General
Topic: Are mega back door Roth contributions considered contributions?
Replies: 87
Views: 2936

Re: Are mega back door Roth contributions considered contributions?

So based on this information, 100% of the funds from a Roth 401k -> Roth IRA conversion would be immediately available for early withdrawal penalty free (no need to wait 5 years). Since none of it (neither principle nor earnings) is taxed during the conversion. Is that correct? Roth 401k to Roth IR...
by JustinR
Wed Jan 16, 2019 4:01 pm
Forum: Investing - Theory, News & General
Topic: Are mega back door Roth contributions considered contributions?
Replies: 87
Views: 2936

Re: Are mega back door Roth contributions considered contributions?

This thread is yet another poster child for why everyone should bookmark this table below and share it for every future post that includes how Roth contributions and conversions are treated upon withdrawal. It covers every scenario that exists. It also never fails to mention Contributions, Conversi...
by JustinR
Wed Jan 16, 2019 6:59 am
Forum: Investing - Theory, News & General
Topic: Around 43K in dividends last year - feel good about it ?
Replies: 160
Views: 13513

Re: Around 43K in dividends last year - feel good about it ?

Without knowing the OP's actual situation (since it wasn't fully described or asked about above), but assuming OP's awareness of the considerations, my initial thought was that the OP should feel good about the dividends and feel bad about the loss in value. Not sure why discussions about dividends...
by JustinR
Wed Jan 16, 2019 6:51 am
Forum: Investing - Theory, News & General
Topic: Are mega back door Roth contributions considered contributions?
Replies: 87
Views: 2936

Re: Are mega back door Roth contributions considered contributions?

OP here again. I think I get it now. There are two ways to add money to a Roth IRA: Contributions (ie, what you deposit directly if you're under the income limits), or Conversions (Back Door and Mega Back Door). Contributions can be withdrawn at any time without tax or penalty. Conversion amounts c...
by JustinR
Wed Jan 16, 2019 3:17 am
Forum: Investing - Theory, News & General
Topic: Are mega back door Roth contributions considered contributions?
Replies: 87
Views: 2936

Re: Are mega back door Roth contributions considered contributions?

Why don't we look at IRS Pub 590-B . The discussion of Roth withdrawals starts on page 30, Additional Tax on Early Distributions . I suggest that anyone thinking of withdrawing before age 59.5, start their reading here. For the purposes of this question, page 33 has Ordering Rules for Distributions...
by JustinR
Tue Jan 15, 2019 11:56 pm
Forum: Investing - Theory, News & General
Topic: Are mega back door Roth contributions considered contributions?
Replies: 87
Views: 2936

Re: Are mega back door Roth contributions considered contributions?

No penalty either. Not for the contribution part. Like I mentioned many times, because the earnings are tax free with Roth if you hold more than 5 years, that’s why the penalty is included for the earnings, not your contributions. If you actually think about it, it doesn’t make sense if they tax th...
by JustinR
Tue Jan 15, 2019 11:45 pm
Forum: Investing - Theory, News & General
Topic: Are mega back door Roth contributions considered contributions?
Replies: 87
Views: 2936

Re: Are mega back door Roth contributions considered contributions?

You pay tax on your traditional IRA conversion. It says it here even under Vanguard. https://investor.vanguard.com/ira/ira-distribution-rules I see you didn't even read my post: 2. You convert it to your Roth IRA. This is a taxable event. Let's say your taxes are 0% this year, so all $100 go in you...
by JustinR
Tue Jan 15, 2019 11:32 pm
Forum: Investing - Theory, News & General
Topic: Are mega back door Roth contributions considered contributions?
Replies: 87
Views: 2936

Re: Are mega back door Roth contributions considered contributions?

https://www.bogleheads.org/wiki/Roth_IRA#Distributions "Beginning on the first day of the fifth year after the year of the conversion can be withdrawn at any time with no tax and no penalty." When you convert money from your traditional IRA to the Roth IRA (let's say $100), all $100 are considered ...
by JustinR
Tue Jan 15, 2019 11:18 pm
Forum: Investing - Theory, News & General
Topic: Are mega back door Roth contributions considered contributions?
Replies: 87
Views: 2936

Re: Are mega back door Roth contributions considered contributions?

It is a conversion, but the resulting funds are considered contributions. Contributions = funds you can access before 60, but only after 5 years after the conversion. I am always ready to learn something new and will be happy to do so if that is the case. However, I am unaware of any funds going in...
by JustinR
Tue Jan 15, 2019 10:06 pm
Forum: Investing - Theory, News & General
Topic: Are mega back door Roth contributions considered contributions?
Replies: 87
Views: 2936

Re: Are mega back door Roth contributions considered contributions?

"Contributions" in your Roth can be accessed before age 60, after a five year seasoning period. A lot of people think this, but it is incorrect. A direct contribution to Roth IRA can be accessed at any time. There is no 5 year seasoning period required. That's obvious and a basic fact of Roth IRAs....
by JustinR
Tue Jan 15, 2019 9:48 pm
Forum: Investing - Theory, News & General
Topic: Are mega back door Roth contributions considered contributions?
Replies: 87
Views: 2936

Re: Are mega back door Roth contributions considered contributions?

Wait, (trad IRA -> Roth IRA) conversions are considered contributions. That's why the Roth Conversion Ladder works to unlock your 401k money before 60. I'm not sure if (after-tax 401k -> Roth IRA) and (Roth 401k -> Roth IRA) are also like that. Anyone know? That's what OP is asking. You have it bac...
by JustinR
Tue Jan 15, 2019 9:46 pm
Forum: Investing - Theory, News & General
Topic: Are mega back door Roth contributions considered contributions?
Replies: 87
Views: 2936

Re: Are mega back door Roth contributions considered contributions?

Yo.

"Contributions" in your Roth can be accessed before age 60, after a five year seasoning period.

OP is asking if mega backdoor Roths are considered that kind of contribution.

Yes or no.
by JustinR
Tue Jan 15, 2019 7:47 pm
Forum: Investing - Theory, News & General
Topic: Are mega back door Roth contributions considered contributions?
Replies: 87
Views: 2936

Re: Are mega back door Roth contributions considered contributions?

Wait, (trad IRA -> Roth IRA) conversions are considered contributions. That's why the Roth Conversion Ladder works to unlock your 401k money before 60.

I'm not sure if (after-tax 401k -> Roth IRA) and (Roth 401k -> Roth IRA) are also like that.

Anyone know? That's what OP is asking.
by JustinR
Tue Jan 15, 2019 6:40 am
Forum: Investing - Theory, News & General
Topic: The Final, Definitive Thread on Brokerage Transfer Bonuses
Replies: 1461
Views: 238821

Re: The Final, Definitive Thread on Brokerage Transfer Bonuses

For the Chase Sapphire offer: https://accounts.chase.com/consumer/banking/online/sapphireUR It's a checking account so how does that work if you want to move securities in? Does it come linked with a brokerage account? Anyone know the answer to my question? I guess you just also open a YouInvest ac...
by JustinR
Mon Jan 14, 2019 5:59 pm
Forum: Investing - Theory, News & General
Topic: Taxable vs Nontaxable retirement savings: is there an ideal ratio?
Replies: 10
Views: 1518

Re: Taxable vs Nontaxable retirement savings: is there an ideal ratio?

As much tax-deferred as humanly possible.

It's that simple really.
by JustinR
Sat Jan 12, 2019 10:16 pm
Forum: Investing - Theory, News & General
Topic: Around 43K in dividends last year - feel good about it ?
Replies: 160
Views: 13513

Re: Around 43K in dividends last year - feel good about it ?

But, still, the statement that launched this whole exchange stands: (underlying) shares are being sold without your input or control. Respectfully, that is not what the statement said. Rather, the statement was: “- Dividends are only "passive income" in the sense that they are your shares being sol...
by JustinR
Fri Jan 11, 2019 11:42 pm
Forum: Investing - Theory, News & General
Topic: Around 43K in dividends last year - feel good about it ?
Replies: 160
Views: 13513

Re: Around 43K in dividends last year - feel good about it ?

Interesting thread... Dividends are inherently neither a feel good nor feel bad item. Like any number of things, it depends on the investor's own personal situation. In tax-sheltered accounts, there is no substantive difference. As for taxable accounts, if the investor is living off the portfolio r...
by JustinR
Fri Jan 11, 2019 11:01 pm
Forum: Investing - Theory, News & General
Topic: The Final, Definitive Thread on Brokerage Transfer Bonuses
Replies: 1461
Views: 238821

Re: The Final, Definitive Thread on Brokerage Transfer Bonuses

For the Chase Sapphire offer: https://accounts.chase.com/consumer/ban ... sapphireUR

It's a checking account so how does that work if you want to move securities in? Does it come linked with a brokerage account?
by JustinR
Fri Jan 11, 2019 8:18 pm
Forum: Investing - Theory, News & General
Topic: Around 43K in dividends last year - feel good about it ?
Replies: 160
Views: 13513

Re: Around 43K in dividends last year - feel good about it ?

A few points that all investors should drill into their head: - Dividends are only "passive income" in the sense that they are your shares being sold off without your input or control. And remember that income in this situation doesn't mean "gain wealth"... it's more like a simple cash transfer fro...
by JustinR
Fri Jan 11, 2019 6:36 pm
Forum: Investing - Theory, News & General
Topic: Around 43K in dividends last year - feel good about it ?
Replies: 160
Views: 13513

Re: Around 43K in dividends last year - feel good about it ?

- Therefore, if there were 2 equivalent funds, one that didn't distribute dividends and one that did, you would have more money at the end of the day with the non-dividend fund. Unless all this happened in a tax-advantaged account, right? Yep. Judging by how this thread is going I should probably m...
by JustinR
Fri Jan 11, 2019 6:07 pm
Forum: Investing - Theory, News & General
Topic: Around 43K in dividends last year - feel good about it ?
Replies: 160
Views: 13513

Re: Around 43K in dividends last year - feel good about it ?

To clarify to all the folks responding, the portfolio size (regular plus retirement ) that generated these dividends is slightly less than $2MM. And my original question was directed towards those people who always say any kind of dividends are bad. That’s why I asked if I should feel good about it...
by JustinR
Fri Jan 11, 2019 4:53 pm
Forum: Investing - Theory, News & General
Topic: Around 43K in dividends last year - feel good about it ?
Replies: 160
Views: 13513

Re: Around 43K in dividends last year - feel good about it ?

Would all of you feel the same if all your mutual funds decided simultaneously and unilaterally to liquidate your entire portfolio and send you a big check? I wouldn't think so... Exactly. Imagine if Vanguard issued him a $2m dividend. The people in this thread congratulating him or denying that re...
by JustinR
Fri Jan 11, 2019 3:42 pm
Forum: Investing - Theory, News & General
Topic: Rumor mill - Fidelity starting individual HSA's Nov. 15th
Replies: 860
Views: 65367

Re: Rumor mill - Fidelity starting individual HSA's Nov. 15th

For those who have employer sponsored HSA accounts where company and individual contributions are sent, what is your plan for integrating a Fidelity account? For example, my mega corp HSA is at Health Equity, and I have both an Investment Account and 'Regular Account.' The 'Regular Account' is requ...
by JustinR
Fri Jan 11, 2019 3:16 pm
Forum: Investing - Theory, News & General
Topic: Around 43K in dividends last year - feel good about it ?
Replies: 160
Views: 13513

Re: Around 43K in dividends last year - feel good about it ?

You should feel terrible about the $14K in taxable dividends. Terrible? Seriously? Sometimes I think some people on this forum live in an alternate universe. You should feel proud. That is an excellent accomplishment. Your total dividends is more than my annual salary. Keep up the good work. Agree ...
by JustinR
Fri Jan 11, 2019 5:47 am
Forum: Investing - Theory, News & General
Topic: Around 43K in dividends last year - feel good about it ?
Replies: 160
Views: 13513

Re: Around 43K in dividends last year - feel good about it ?

Don’t listen to these total return people here. 43k is good and most is tax free or taxed at a low rate. The income is earned every quarter and can pay bills and don’t want to wait until you are 65 and sell. That sit eh beauty of dividends. "Don't listen to all the people that actually know what th...
by JustinR
Thu Jan 10, 2019 11:32 pm
Forum: Investing - Theory, News & General
Topic: Around 43K in dividends last year - feel good about it ?
Replies: 160
Views: 13513

Re: Around 43K in dividends last year - feel good about it ?

Read this recent thread to find out why you didn't make any money from these dividends, but actually lost a bunch of money: https://www.bogleheads.org/forum/viewtopic.php?p=4309296 So many people don't understand that you don't profit from dividends at all . My portfolio threw around 43K total divid...
by JustinR
Tue Jan 08, 2019 11:40 pm
Forum: Investing - Theory, News & General
Topic: Traditional 401K vs Roth 401k
Replies: 60
Views: 3562

Re: Traditional 401K vs Roth 401k

It does trigger a taxable event on the conversion. But if you're smart you can plan things ahead so the taxes on your conversion are extremely low or 0%. That's the power of a traditional 401k...you have options to manipulate your taxes later. First of all, you're supposed to do this when you're re...
by JustinR
Tue Jan 08, 2019 9:53 pm
Forum: Investing - Theory, News & General
Topic: Embarrassed to ask... dividends and Total Return
Replies: 39
Views: 4735

Re: Embarrassed to ask... dividends and Total Return

You are completely ignorng that dividends don’t work that way in tax advantaged accounts. There's nothing to discuss about dividends in tax-advantaged accounts...as there are no taxes there. The net gain there is $0, which we already covered: Err, you either gain $0 or lose money. Any time you sell...
by JustinR
Tue Jan 08, 2019 7:21 pm
Forum: Investing - Theory, News & General
Topic: Fell in Love with Fidelity
Replies: 60
Views: 6202

Re: Fell in Love with Fidelity

Okay so I can be a little impulsive, but I opened a Fidelity brokerage account and have fallen in love. I had three goals I wanted to achieve: -- Invest in bond market index fund -- increase international stock exposure with an international index fund -- Expand US stock exposure with a total stock...
by JustinR
Tue Jan 08, 2019 6:32 am
Forum: Investing - Theory, News & General
Topic: Rumor mill - Fidelity starting individual HSA's Nov. 15th
Replies: 860
Views: 65367

Re: Rumor mill - Fidelity starting individual HSA's Nov. 15th

My transfer from Lively (all $$ in TD Ameritrade) completed on 12/26. The transfer showed a $50 fee deducted. I can no longer login to TD Ameritrade to see my account. However, a few days later I logged in to the Lively website and under “Investments”, it shows a $50.01 balance. I called Fidelity a...
by JustinR
Tue Jan 08, 2019 1:54 am
Forum: Investing - Theory, News & General
Topic: Embarrassed to ask... dividends and Total Return
Replies: 39
Views: 4735

Re: Embarrassed to ask... dividends and Total Return

Thanks for all these thoughtful rsponses, but still confused. Here's why- if I look at my Vanguard Portal for Vanguard Total Stock ( in IRA; dividends reinvested) under "Personal Performance" I see monthly accounting of "Market Gain/Loss of -$5894.27, "Income Return" of $302.47 and Total Return of ...