Search found 1287 matches

by JustinR
Sun Jul 05, 2020 11:02 am
Forum: Personal Investments
Topic: Roth -> Traditional Recharacterization tax question
Replies: 5
Views: 222

Re: Roth -> Traditional Recharacterization tax question

The $500 in earnings will be subject to taxes. It is not all post tax money...the earning have never been taxed. The recharacterization causes the past to be changed. You pay taxes as if you had contributed to a traditional IRA in the first place. If you had contributed $6000 to your only tradition...
by JustinR
Sun Jul 05, 2020 7:53 am
Forum: Personal Investments
Topic: Roth -> Traditional Recharacterization tax question
Replies: 5
Views: 222

Roth -> Traditional Recharacterization tax question

In 2019, I contributed $6000 to a Roth IRA.

Then I figured out I was going to make too much so I recharacterized it to a Traditional. This was $6,000 + $500 in gains.

Then I converted the $6,500 back to a Roth.

What part of that is taxable? All of that is post-tax money.
by JustinR
Sun Jun 28, 2020 7:57 am
Forum: Investing - Theory, News & General
Topic: lump sum investing vs dollar cost averaging in the present market
Replies: 66
Views: 3159

Re: lump sum investing vs dollar cost averaging in the present market

Love these threads. "I understand that DCA doesn't make any sense and is mathematically worse than lump sum investing. Should I do it anyway?" I wonder who said that? You are probably in the wrong thread, perhaps you can direct me to the thread you refer to? That does not seem a very intelligent st...
by JustinR
Sun Jun 28, 2020 5:39 am
Forum: Investing - Theory, News & General
Topic: lump sum investing vs dollar cost averaging in the present market
Replies: 66
Views: 3159

Re: lump sum investing vs dollar cost averaging in the present market

Love these threads. "I understand that DCA doesn't make any sense and is mathematically worse than lump sum investing. Should I do it anyway?" I wonder who said that? You are probably in the wrong thread, perhaps you can direct me to the thread you refer to? That does not seem a very intelligent st...
by JustinR
Sat Jun 27, 2020 8:29 pm
Forum: Investing - Theory, News & General
Topic: lump sum investing vs dollar cost averaging in the present market
Replies: 66
Views: 3159

Re: lump sum investing vs dollar cost averaging in the present market

Love these threads.

"I understand that DCA doesn't make any sense and is mathematically worse than lump sum investing. Should I do it anyway?"
by JustinR
Fri Jun 26, 2020 8:45 pm
Forum: Investing - Theory, News & General
Topic: Asymmetric risk in the Roth vs Traditional question
Replies: 277
Views: 10987

Re: Asymmetric risk in the Roth vs Traditional question

Who pays more taxes in retirement than during their working years?

That doesn't even make sense.

Traditional is better for this reason and a bunch of other reasons. Always prefer Traditional over Roth.
by JustinR
Fri Jun 26, 2020 7:41 am
Forum: Investing - Theory, News & General
Topic: Didn't receive Q1 2020 dividend for VFSAX (Vanguard FTSE All-World ex-US Small-Cap Index Fund)
Replies: 6
Views: 753

Re: Didn't receive Q1 2020 dividend for VFSAX (Vanguard FTSE All-World ex-US Small-Cap Index Fund)

So they listed the distribution dates on here but just ended up not paying it? Declare Date Record Date Reinvest/Ex Payable Date VSS FTSE All-World ex-US Small-Cap ETF 6/18/2020 6/23/2020 6/22/2020 6/25/2020 VFSAX FTSE All-World ex-US Small-Cap Index Admiral 6/18/2020 6/18/2020 6/19/2020 6/22/2020
by JustinR
Tue Jun 02, 2020 5:08 pm
Forum: Investing - Theory, News & General
Topic: Tax loss harvesting
Replies: 57
Views: 3187

Re: Tax loss harvesting

Besides the $3k income offset, Is there any advantage to _actively_ selling stock just to TLH? Here is one example: 1. Today you sell a stock for $100,000 capital loss. 2. Later you sell your home or business for a large capital gain. 3. You can reduce that capital gain by subtracting any remaining...
by JustinR
Sun May 31, 2020 10:15 pm
Forum: Investing - Theory, News & General
Topic: Tax loss harvesting
Replies: 57
Views: 3187

Re: Tax loss harvesting

Besides the $3k income offset, Is there any advantage to _actively_ selling stock just to TLH? So, you are dismissing the value of postponing CG taxes? Suppose that a large fraction of your taxable account will be passed on to your beneficiaries, or donated to charity. If you harvest enough losses ...
by JustinR
Sun May 31, 2020 12:02 pm
Forum: Investing - Theory, News & General
Topic: Tax loss harvesting
Replies: 57
Views: 3187

Re: Tax loss harvesting

Do you just need to keep track of the annual totals of the STCG, STCL, LTCG & LTCL that your broker sends you? Or do you need to keep track of every detail like this stock had these gains, this stock had this loss and this gain, etc? I mean you should have a general idea of what you sold this year ...
by JustinR
Sun May 31, 2020 10:27 am
Forum: Investing - Theory, News & General
Topic: Tax loss harvesting
Replies: 57
Views: 3187

Re: Tax loss harvesting

You can do $3k a year but it carries over. So if you TLH $9k this year you can deduct $3k this year, $3k next year, and $3k the year after that. As a total newbie in this regard.... I only got a brokerage in January this year, and have never had capital gains/losses on my tax return before. A coupl...
by JustinR
Sun May 31, 2020 8:29 am
Forum: Investing - Theory, News & General
Topic: “WHEN YOU'VE WON the game, stop playing with the money you really need.”
Replies: 233
Views: 19304

Re: “WHEN YOU'VE WON the game, stop playing with the money you really need.”

How many years of retirement does LMP take into account? How many years of expenses do you need to save before you've "won the game"?

What if you live longer than that?
by JustinR
Sun May 31, 2020 6:14 am
Forum: Investing - Theory, News & General
Topic: Tax loss harvesting
Replies: 57
Views: 3187

Re: Tax loss harvesting

You can do $3k a year but it carries over. So if you TLH $9k this year you can deduct $3k this year, $3k next year, and $3k the year after that. Yes your basis gets lowered but you can sell when your tax bracket is lower than it is now (like during retirement) and you'll come out ahead. Also, deferr...
by JustinR
Fri May 29, 2020 10:40 pm
Forum: Investing - Theory, News & General
Topic: Vanguard High Dividend Yield Index Fund
Replies: 194
Views: 19095

Re: Vanguard High Dividend Yield Index Fund

Dividends are taxed more than long term capital gains. Qualified dividends are taxed exactly the same as LTCG. Dividends are taxed more because you're taxed on the entire dividend, whereas you recover principle on sold shares. There's no situation where a dividend is taxed less than sold shares (ot...
by JustinR
Thu May 28, 2020 9:48 pm
Forum: Investing - Theory, News & General
Topic: Vanguard High Dividend Yield Index Fund
Replies: 194
Views: 19095

Re: Vanguard High Dividend Yield Index Fund

frequently when one invests for dividends/income they don't care about relative performance, they're concerned with positive cash flow So they're basically kindergarten investors. Best be sure of your position before sarcasm. I manage a trust. Under some circumstances total taxes on CGs are about 3...
by JustinR
Thu May 28, 2020 9:47 pm
Forum: Investing - Theory, News & General
Topic: Roth + Time vs Pretax + tax
Replies: 94
Views: 5462

Re: Roth + Time vs Pretax + tax

Hiya, Looking for an open discussion on this one. I feel like anytime people discuss Roth vs Pretax it almost always comes down to the loose rule of thumb that if you will be taxed more in the future go with Roth and if you expect the opposite go with Pretax. One factor that is usually mentioned, b...
by JustinR
Thu May 28, 2020 4:33 am
Forum: Investing - Theory, News & General
Topic: Roth + Time vs Pretax + tax
Replies: 94
Views: 5462

Re: Roth + Time vs Pretax + tax

Hiya, Looking for an open discussion on this one. I feel like anytime people discuss Roth vs Pretax it almost always comes down to the loose rule of thumb that if you will be taxed more in the future go with Roth and if you expect the opposite go with Pretax. One factor that is usually mentioned, b...
by JustinR
Tue May 26, 2020 9:39 am
Forum: Investing - Theory, News & General
Topic: Vanguard High Dividend Yield Index Fund
Replies: 194
Views: 19095

Re: Vanguard High Dividend Yield Index Fund

KEotSK66 wrote:
Thu May 21, 2020 9:28 am
frequently when one invests for dividends/income they don't care about relative performance, they're concerned with positive cash flow
So they're basically kindergarten investors.
by JustinR
Sun May 24, 2020 8:42 am
Forum: Investing - Theory, News & General
Topic: Businesses that are permanently destroyed due to COVID?
Replies: 34
Views: 2877

Businesses that are permanently destroyed due to COVID?

Even though COVID may seem like a once in a lifetime incident, I feel like the restaurant industry is going to have to completely rethink it's model. Who will invest in a business (that's already infamously difficult to succeed in) that will fold the second another event like this hits? Buffets, in ...
by JustinR
Sat May 23, 2020 8:00 am
Forum: Investing - Theory, News & General
Topic: Peer to peer lending in this day and age
Replies: 46
Views: 2851

Re: Peer to peer lending in this day and age

steve321 wrote:
Sat May 23, 2020 7:58 am
JustinR wrote:
Sat May 23, 2020 7:50 am
You'll regret it.

Remember this post a couple months from now.
I'll regret what: selling now or not selling now?
Ohh, you already hold them... welp.
by JustinR
Fri May 22, 2020 10:34 pm
Forum: Investing - Theory, News & General
Topic: Roth + Time vs Pretax + tax
Replies: 94
Views: 5462

Re: Roth + Time vs Pretax + tax

Hiya, Looking for an open discussion on this one. I feel like anytime people discuss Roth vs Pretax it almost always comes down to the loose rule of thumb that if you will be taxed more in the future go with Roth and if you expect the opposite go with Pretax. One factor that is usually mentioned, b...
by JustinR
Mon May 18, 2020 2:55 pm
Forum: Investing - Theory, News & General
Topic: Small Cap Value heads Rejoice !!!
Replies: 1769
Views: 140634

Re: Small Cap Value heads Rejoice !!!

I'm not selling now, but I will whenever it is I break even. That doesn't make much sense. What if between now and the time you break even, whatever you'll sell for outperforms small value? Sure, you'll be breaking even, which is really irrelevant, but buying the replacement asset at an even higher...
by JustinR
Sun May 17, 2020 10:24 pm
Forum: Investing - Theory, News & General
Topic: Small Cap Value heads Rejoice !!!
Replies: 1769
Views: 140634

Re: Small Cap Value heads Rejoice !!!

I'm not selling now, but I will whenever it is I break even.
by JustinR
Sun May 17, 2020 9:56 pm
Forum: Investing - Theory, News & General
Topic: Appreciating the magnitude of Sequence of Returns immediately after retirement
Replies: 115
Views: 6074

Re: Appreciating the magnitude of Sequence of Returns immediately after retirement

I've recently come to think that all of the talk around Sequence of Returns is really unnecessary. The whole premise is rather contrived: Given a particular set of returns , the sequence in which they occur can affect your final wealth (assuming some non-proportional withdrawals and additions, else...
by JustinR
Sun May 17, 2020 8:54 pm
Forum: Investing - Theory, News & General
Topic: Dividend vs Total Return question
Replies: 66
Views: 2902

Re: Dividend vs Total Return question

All things equal, total return/selling your own shares wins (dividends lose you more money because they are taxed more). Would the answer be different if the dividend stocks were in a Roth account. No taxes on the dividends. Yes. When taxes are not a factor (retirement accounts), the two situations...
by JustinR
Sun May 17, 2020 8:39 pm
Forum: Investing - Theory, News & General
Topic: Dividend vs Total Return question
Replies: 66
Views: 2902

Re: Dividend vs Total Return question

I changed the question to owning one stock,ATT ,a few posts back to eliminate the confusion of owning different things.I really am interested in the answer if someone has one. Thanks We already answered your question. All things equal, total return/selling your own shares wins (dividends lose you m...
by JustinR
Sun May 17, 2020 7:15 pm
Forum: Investing - Theory, News & General
Topic: Dividend vs Total Return question
Replies: 66
Views: 2902

Re: Dividend vs Total Return question

Total Return wins. Dividends are taxed more than selling shares yourself: With dividends, you're taxed on the entire amount. When selling shares, you recover the principle so you're only taxed on the gain. In your specific example, 100% of the dividend is subject to tax, but 0% of the sold shares ar...
by JustinR
Sun May 17, 2020 9:35 am
Forum: Investing - Theory, News & General
Topic: Appreciating the magnitude of Sequence of Returns immediately after retirement
Replies: 115
Views: 6074

Re: Appreciating the magnitude of Sequence of Returns immediately after retirement

Maybe start off retirement with something like 60/40, with part of the 40% being 2 years worth emergency fund of cash?

In any case, you shouldn't consider cash as separate from your AA, or that would be mental accounting.
by JustinR
Sun May 17, 2020 8:54 am
Forum: Investing - Theory, News & General
Topic: What's the point of TLH when you already have booked losses?
Replies: 35
Views: 2098

Re: What's the point of TLH when you already have booked losses?

I think this is a "well, it can't hurt" situation. There is only potential benefit, with a worst case outcome of just consuming the banked losses selling the same assets and breaking even. Reading between the lines, I think this was what the OP was touching on, but I can't speak for him/her. I don'...
by JustinR
Sun May 17, 2020 8:51 am
Forum: Investing - Theory, News & General
Topic: What's the point of TLH when you already have booked losses?
Replies: 35
Views: 2098

Re: What's the point of TLH when you already have booked losses?

I think there is a potential downside. If you sell something at a loss and buy something similar, the replacement shares will have a lower relative cost basis than the original shares. When the replacement shares are sold, there will be more capital gains to pay tax on if you have run out of banked...
by JustinR
Sun May 17, 2020 8:49 am
Forum: Investing - Theory, News & General
Topic: Appreciating the magnitude of Sequence of Returns immediately after retirement
Replies: 115
Views: 6074

Re: Appreciating the magnitude of Sequence of Returns immediately after retirement

This is a really great post, and it dovetails with the other ongoing discussion about FIRE. Personally, the importance of the Sequence of Returns Risk is actually why I don't plant to obsess about a really low SWR. Instead, I plan to just accumulate an extra couple years of living expenses and have...
by JustinR
Sun May 17, 2020 8:41 am
Forum: Investing - Theory, News & General
Topic: Appreciating the magnitude of Sequence of Returns immediately after retirement
Replies: 115
Views: 6074

Re: Appreciating the magnitude of Sequence of Returns immediately after retirement

Awesome visualization of the concept!

Your example is incredible too. Thank you for doing this post it really hammers in the concept for me. I'll definitely do something like a bond tent.
by JustinR
Sat May 16, 2020 7:49 am
Forum: Investing - Theory, News & General
Topic: SWR Data: 6.5 Million Possibilities Considered
Replies: 152
Views: 7216

Re: SWR Data: 6.5 Million Possibilities Considered

That being said, there are definitely some diminishing returns past 75/25 even for long time horizons. I think if I were retiring at an extremely early age (let’s say age 40) I’d have a hard time holding more than 80% stocks. Sure I could go 100% stocks, but not sure the extra 1 or 2% chance of his...
by JustinR
Fri May 15, 2020 9:13 pm
Forum: Investing - Theory, News & General
Topic: SWR Data: 6.5 Million Possibilities Considered
Replies: 152
Views: 7216

Re: SWR Data: 6.5 Million Possibilities Considered

Image

Is it just me or does 75% stocks look safer than 100% in the <4% range?
by JustinR
Wed May 13, 2020 9:58 pm
Forum: Investing - Theory, News & General
Topic: Dollar Cost Averaging during volatile markets
Replies: 12
Views: 1448

Re: Dollar Cost Averaging during volatile markets

abhishekprateek wrote:
Wed May 13, 2020 6:24 pm
Are there any strategies to optimize DCA during volatile times like this covid period?
Yea, it's called don't.
by JustinR
Tue May 12, 2020 10:05 pm
Forum: Investing - Theory, News & General
Topic: Will "work from home" destroy the commercial real estate market?
Replies: 169
Views: 13587

Re: Will "work from home" destroy the commercial real estate market?

Dargo wrote:
Tue May 12, 2020 7:01 pm
Personally I hate wfh. Some of us need some time away from our spouses and kids.
In a normal WFH situation, wouldn't your kids and wife be somewhere else during the day?

Judge WFH based on a normal situation, not this pandemic.
by JustinR
Tue May 12, 2020 1:35 am
Forum: Investing - Theory, News & General
Topic: Will "work from home" destroy the commercial real estate market?
Replies: 169
Views: 13587

Re: Will "work from home" destroy the commercial real estate market?

NYTimes: What if You Don’t Want to Go Back to the Office? For Jeff Anderson, 61, working from home during the coronavirus pandemic has been a respite from office politics and the chatter around the copy machine. But as the push to reopen the country’s economy intensifies, so do feelings of dread at...
by JustinR
Sun May 10, 2020 9:47 am
Forum: Investing - Theory, News & General
Topic: I am always slightly disappointed with my AA
Replies: 48
Views: 3567

Re: I am always slightly disappointed with my AA

And that's how I know I have the perfect AA. It took me 13 years of investing to figure this out this year. When the stock market is at highs or rising quickly, so many people ask about lower bond allocations. "Young investors don't need bonds, bonds are a drag, yields are low, you have 20+ years, ...
by JustinR
Sun May 10, 2020 8:53 am
Forum: Investing - Theory, News & General
Topic: Nothing to TLH
Replies: 29
Views: 1966

Re: Nothing to TLH

Hmm. I'll probably convert my MFs to ETFs. Would probably make this easier. Does Vanguard brokerage support non-Vanguard ETFs? Could I sell VBR and buy a non-Vanguard ETF there? This will of course generate a taxable event. This is a thread about TLH, that is the whole idea. Regardless, I do not be...
by JustinR
Sun May 10, 2020 5:46 am
Forum: Investing - Theory, News & General
Topic: A bond rule of thumb better than "age in bonds"
Replies: 152
Views: 10550

Re: A bond rule of thumb better than "age in bonds"

If you are anywhere close to the SWR, entering retirement @20% bonds is stupid bad. [edit] That was pretty harsh without explaining the issues. There are two substantial risks for retirees who are “close” to a sustainable withdrawal rate (SWR), that is, retirees who don’t have a large amount of saf...
by JustinR
Sat May 09, 2020 10:23 pm
Forum: Investing - Theory, News & General
Topic: Long-term planning gone awry
Replies: 34
Views: 2966

Re: Long-term planning gone awry

For accumulators with 20+ year time horizon, how do you deal with things potentially going wrong in your plan along the way? E.g. job loss or salary reduction, unexpected major expenses, tax code changes, lifestyle changes, etc. I guess the flip side of this is things can also go in your favor (e.g...
by JustinR
Sat May 09, 2020 8:58 pm
Forum: Investing - Theory, News & General
Topic: Nothing to TLH
Replies: 29
Views: 1966

Re: Nothing to TLH

There are countless options if you don’t mind ETFs. Even tax-managed small cap could be viable if you prefer MF; while it’s not value, it is deeper size factor exposure via S&P600 index. I'm too scared to TLH using ETFs :( VTMSX is an option but I'm looking at the comparison on Morningstar and it d...
by JustinR
Fri May 08, 2020 9:20 pm
Forum: Investing - Theory, News & General
Topic: A bond rule of thumb better than "age in bonds"
Replies: 152
Views: 10550

Re: A bond rule of thumb better than "age in bonds"

What do you guys think of this rule?

Image
by JustinR
Fri May 08, 2020 9:19 pm
Forum: Investing - Theory, News & General
Topic: Will "work from home" destroy the commercial real estate market?
Replies: 169
Views: 13587

Will "work from home" destroy the commercial real estate market?

Now that people have experienced WFH, the genie can't be put back in the bottle. While not every company will do WFH after the pandemic, many will probably offer part time or full time WFH arrangements. Workers will demand it and companies will offer it to be competitive. This could mean that compan...
by JustinR
Fri May 08, 2020 8:50 pm
Forum: Investing - Theory, News & General
Topic: Nothing to TLH
Replies: 29
Views: 1966

Re: Nothing to TLH

Even worse: I have a lot of VSIAX losses, but no fund to pair it with. There are countless options if you don’t mind ETFs. Even tax-managed small cap could be viable if you prefer MF; while it’s not value, it is deeper size factor exposure via S&P600 index. I'm too scared to TLH using ETFs :( VTMSX...
by JustinR
Fri May 08, 2020 7:24 pm
Forum: Investing - Theory, News & General
Topic: Nothing to TLH
Replies: 29
Views: 1966

Re: Nothing to TLH

Even worse: I have a lot of VSIAX losses, but no fund to pair it with. There are countless options if you don’t mind ETFs. Even tax-managed small cap could be viable if you prefer MF; while it’s not value, it is deeper size factor exposure via S&P600 index. I'm too scared to TLH using ETFs :( VTMSX...
by JustinR
Fri May 08, 2020 6:35 am
Forum: Investing - Theory, News & General
Topic: Introducing Schwab Stock Slices™ – Designed to Make Investing Easier and More Accessible
Replies: 42
Views: 4739

Re: Introducing Schwab Stock Slices™ – Designed to Make Investing Easier and More Accessible

Fidelity mobile is superior to this and allows fractional shares/dollar purchases of etfs and stocks. I have switched taxable account to fidelity because of this as I now just put in how much dollars I want to buy of etfs like for mutual funds. M1 finance is better as well for fractional shares. Ho...
by JustinR
Fri May 08, 2020 6:02 am
Forum: Investing - Theory, News & General
Topic: Nothing to TLH
Replies: 29
Views: 1966

Re: Nothing to TLH

Even worse: I have a lot of VSIAX losses, but no fund to pair it with.