Search found 744 matches

by JustinR
Thu Nov 15, 2018 11:56 pm
Forum: Investing - Theory, News & General
Topic: Rumor mill - Fidelity starting individual HSA's Nov. 15th
Replies: 242
Views: 15564

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

Opened one, don't see any downside, bye bye Lively (once it's been open long enough to avoid that $25 closure fee) Those of you in CA who are striving to keep things tax free, which treasury funds do you recommend at Fidelity? I'm trying to use the screener, and it seems like iShares Treasury bond ...
by JustinR
Thu Nov 15, 2018 9:18 pm
Forum: Investing - Theory, News & General
Topic: Rumor mill - Fidelity starting individual HSA's Nov. 15th
Replies: 242
Views: 15564

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

Am I correct that these are the trading fee-free options at Fidelity?

Mutual Funds:
https://www.fidelity.com/fund-screener/ ... ml#!&ntf=Y

ETFs (requires log in, set filters to Trading Characterstics -> Buy Online Commision-Free -> Yes):
https://research2.fidelity.com/pi/etf-screener
by JustinR
Wed Nov 14, 2018 3:57 pm
Forum: Investing - Theory, News & General
Topic: Can someone explain specifically how the "bucket" approach to retirement withdrawals is supposed to work?
Replies: 75
Views: 4698

Re: Can someone explain specifically how the "bucket" approach to retirement withdrawals is supposed to work?

It works by tricking yourself into thinking you're doing something special when really you're just mental accounting your asset allocation.
by JustinR
Mon Nov 12, 2018 11:21 pm
Forum: Investing - Help with Personal Investments
Topic: Rearrange 3 fund portfolio or leave accounts mirrored
Replies: 16
Views: 1425

Re: Rearrange 3 fund portfolio or leave accounts mirrored

In your Roth, international then US. In your taxable put the rest of your US. I think most will disagree. International is probably better in a taxable accounts to take it vantage of the foreign tax credit. Nope, even after the foreign tax credit, international is still way more tax-inefficient tha...
by JustinR
Sun Nov 11, 2018 9:36 pm
Forum: Investing - Theory, News & General
Topic: Rumor mill - Fidelity starting individual HSA's Nov. 15th
Replies: 242
Views: 15564

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

If Fidelity is $48/year, then Lively is still better at $30/year (2.50/mo). But it's one full fledged Fidelity brokerage account with many more free options than a TD Ameritrade account (index funds versus ETFs, iShares ETFs versus SPDR ETFs, commission-free Treasuries, ... ...). Can set up automat...
by JustinR
Sun Nov 11, 2018 9:28 pm
Forum: Investing - Theory, News & General
Topic: Roth Investment Theory
Replies: 45
Views: 3652

Re: Roth Investment Theory

Also, you should throw out the concept of "dollar cost averaging" into your mental garbage can. It's an inferior and completely illogical strategy that doesn't deserve another thought in your lifetime. That's an extraordinarily broad (and negative) statement. Yes, generally the market goes up, so i...
by JustinR
Sun Nov 11, 2018 9:06 pm
Forum: Investing - Theory, News & General
Topic: Rumor mill - Fidelity starting individual HSA's Nov. 15th
Replies: 242
Views: 15564

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

Last I knew, Fidelity's current HSA fees were $12/quarter if an employer was no longer paying them, with no cash minimum. I believe you could invest in just about anything. I don't know about the 0% ER index funds. This would be a welcome addition to the HSA custodian choice. Now, if we could just ...
by JustinR
Sun Nov 11, 2018 8:03 am
Forum: Investing - Theory, News & General
Topic: Take taxes into account when rebalancing?
Replies: 44
Views: 2234

Re: Take taxes into account when rebalancing?

You're right, everything is fuzzy math when it comes to AA and precise rebalancing. That's exactly why it's a fruitless endeavor to try and over-optimize things. Just pick an AA, rebalance in your tax-protected accounts, put new money in your taxable accounts, and call it a day. One may get in a si...
by JustinR
Sun Nov 11, 2018 6:05 am
Forum: Investing - Theory, News & General
Topic: Take taxes into account when rebalancing?
Replies: 44
Views: 2234

Re: Take taxes into account when rebalancing?

No, this just sounds like a lot of busywork and over-optimization for nothing. You don't know what taxes you're going to pay when you sell. There are various issues with estimating taxes. The federal and state tax rates may change, but the changes are usually not that drastic. Federal brackets are ...
by JustinR
Sat Nov 10, 2018 11:28 pm
Forum: Investing - Help with Personal Investments
Topic: Roth vs. Traditional 401k
Replies: 129
Views: 6061

Re: Roth vs. Traditional 401k

As a rule, deferring taxes is always superior to paying taxes now. (Very few exceptions)

So do a traditional 401k.
by JustinR
Sat Nov 10, 2018 11:24 pm
Forum: Investing - Theory, News & General
Topic: Roth Investment Theory
Replies: 45
Views: 3652

Re: Roth Investment Theory

Dollar cost averaging is a neccisity for people who don't make a lot of money. I wish I made 100K+ per year like I feel most everyone on these boards do. If you make 60K, like myself, you can't just lump sum giant amounts of money into accounts without having to dollar cost average or spread it out...
by JustinR
Sat Nov 10, 2018 9:52 pm
Forum: Investing - Theory, News & General
Topic: Roth Investment Theory
Replies: 45
Views: 3652

Re: Roth Investment Theory

Also, you should throw out the concept of "dollar cost averaging" into your mental garbage can. It's an inferior and completely illogical strategy that doesn't deserve another thought in your lifetime. That's an extraordinarily broad (and negative) statement. Yes, generally the market goes up, so i...
by JustinR
Sat Nov 10, 2018 9:50 pm
Forum: Investing - Help with Personal Investments
Topic: Traditional or Roth IRA for spouse and I
Replies: 28
Views: 1588

Re: Traditional or Roth IRA for spouse and I

Boglehead youngling here! For 2019 I am trying to decide if I am eligible to deduct traditional IRA contributions for myself and wife. MFJ 32/28 yo. No state income tax on wages - TN Gross income of 118k base with 3-5k once a year bonus. Wife is a stay at home mom who may bring in roughly 2-5k per ...
by JustinR
Sat Nov 10, 2018 9:35 pm
Forum: Investing - Theory, News & General
Topic: Roth Investment Theory
Replies: 45
Views: 3652

Re: Roth Investment Theory

Come January we will be able to drop another $5,500 into our IRAs. Is there a consensus boglehead philosophy on dollar cost averaging $458 per month into the Roth every month versus just dumping everything in all at once? Is one way statistically better than the other - or does it not matter? Perso...
by JustinR
Sat Nov 10, 2018 9:08 pm
Forum: Investing - Theory, News & General
Topic: Take taxes into account when rebalancing?
Replies: 44
Views: 2234

Re: Take taxes into account when rebalancing?

No, this just sounds like a lot of busywork and over-optimization for nothing.

You don't know what taxes you're going to pay when you sell.
by JustinR
Sat Nov 10, 2018 3:49 am
Forum: Investing - Help with Personal Investments
Topic: Rearrange 3 fund portfolio or leave accounts mirrored
Replies: 16
Views: 1425

Re: Rearrange 3 fund portfolio or leave accounts mirrored

In your Roth, international then US. In your taxable put the rest of your US. I think most will disagree. International is probably better in a taxable accounts to take it vantage of the foreign tax credit. Nope, even after the foreign tax credit, international is still way more tax-inefficient tha...
by JustinR
Fri Nov 09, 2018 11:49 pm
Forum: Investing - Help with Personal Investments
Topic: New job - not sure how much to 401k and how much to Roth IRA
Replies: 17
Views: 1375

Re: New job - not sure how much to 401k and how much to Roth IRA

That's a good point. Wouldn't it be better to do the 401k up the match, then two Traditional IRAs at Vanguard (for the lower expense ratios and better options)? There's income limits on a tIRA: https://www.irs.gov/retirement-plans/2019-ira-deduction-limits-effect-of-modified-agi-on-deduction-if-you...
by JustinR
Fri Nov 09, 2018 11:08 pm
Forum: Investing - Help with Personal Investments
Topic: New job - not sure how much to 401k and how much to Roth IRA
Replies: 17
Views: 1375

Re: New job - not sure how much to 401k and how much to Roth IRA

I want to retire at 50, which makes the IRAs more attractive than the 401k, in terms of being able to access it at a younger age. However, my income now will be $75,000, and I expect a retirement income of no more than $24,000, so paying taxes on my income in retirement instead of now makes the 401...
by JustinR
Fri Nov 09, 2018 10:04 pm
Forum: Investing - Help with Personal Investments
Topic: Rearrange 3 fund portfolio or leave accounts mirrored
Replies: 16
Views: 1425

Re: Rearrange 3 fund portfolio or leave accounts mirrored

Ideally this is the setup you want, in priority: Traditional -> Roth -> Taxable Bonds -> International -> US In other words, fill up traditional with as much bonds as you can, then international if any space left. In your Roth, international then US. In your taxable put the rest of your US. You don'...
by JustinR
Fri Nov 09, 2018 8:57 pm
Forum: Investing - Theory, News & General
Topic: How much international stock? A suggestion.
Replies: 440
Views: 79066

Re: Words of wisdom

Bogleheads: When I look at oldzey's graph (above), I am reminded of this statement by author Bill Bernstein: "When I disagree with Jack Bogle – I am usually wrong." Best wishes. Taylor Buy the haystack* *Except for international because one guy told me not to And because it has shown itself to be a...
by JustinR
Fri Nov 09, 2018 8:21 pm
Forum: Investing - Theory, News & General
Topic: How much international stock? A suggestion.
Replies: 440
Views: 79066

Re: Words of wisdom

Taylor Larimore wrote:
Fri Nov 09, 2018 5:47 pm
Bogleheads:

When I look at oldzey's graph (above), I am reminded of this statement by author Bill Bernstein:
"When I disagree with Jack Bogle – I am usually wrong."
Best wishes.
Taylor
Buy the haystack*

*Except for international because one guy told me not to
by JustinR
Sat Nov 03, 2018 4:18 pm
Forum: Personal Finance (Not Investing)
Topic: What FIRE says to me [Financial Independence, Retire Early]
Replies: 10
Views: 1114

Re: What FIRE says to me [Financial Independence, Retire Early]

Spoken like an old person yelling at clouds.

Spending 80% of your life working is humanity's past, not their future.

Just because you want to spend 80% of your life working doesn't mean the rest of us have to.
by JustinR
Sat Nov 03, 2018 2:34 pm
Forum: Investing - Theory, News & General
Topic: Debunking Bonds in Taxable
Replies: 99
Views: 10385

Re: Debunking Bonds in Taxable

Given that you can move +$60k to tax-sheltered accounts these days, it only makes sense to use taxable for retirement if you have a very high income or if you plan to retire early. There are several very effective and realistic means of accessing money prior to age 59.5 from tax-advantaged accounts...
by JustinR
Sat Nov 03, 2018 4:38 am
Forum: Investing - Theory, News & General
Topic: Brett Arends: Here's a simple way to beat a bear market
Replies: 38
Views: 5207

Re: Brett Arends: Here's a simple way to beat a bear market

Here's a crazy strategy. Sell everything at the peak and then lump sum back in at the bottom. Lump sum wins again.
by JustinR
Sat Nov 03, 2018 3:22 am
Forum: Investing - Theory, News & General
Topic: no dividends in index funds!
Replies: 95
Views: 9275

Re: no dividends in index funds!

Petition to have dividends officially reframed as:

An annoying guy randomly sells off portions of your investments a few times a year, giving you extra taxes and lowering your return.
by JustinR
Sat Nov 03, 2018 3:06 am
Forum: Investing - Theory, News & General
Topic: When do YOU pull the trigger for TLH? [Tax Loss Harvesting]
Replies: 48
Views: 3100

Re: When do YOU pull the trigger for TLH? [Tax Loss Harvesting]

Now, if you can TLH to achieve the tax benefit for 10 years, you are looking at between $9,000 and $2,500 for a few minutes work. (10 years worth requires $30K in net tax loss harvesting.) livesoft shared his strategy to live tax free in retirement and this trick was a part of it. Can you link me t...
by JustinR
Thu Nov 01, 2018 1:53 pm
Forum: Investing - Theory, News & General
Topic: When do YOU pull the trigger for TLH? [Tax Loss Harvesting]
Replies: 48
Views: 3100

Re: When do YOU pull the trigger for TLH?

How much is 10 minutes of your time worth? I've TLH'ed $300. Why not. I've worked a lot harder for 10 minutes for a lot less. And if the replacement fund drops by $300 the following week? And the replacement for that drops $300 the following week? I worry about my portfolio getting cluttered with a...
by JustinR
Wed Oct 31, 2018 7:16 pm
Forum: Investing - Theory, News & General
Topic: When do YOU pull the trigger for TLH? [Tax Loss Harvesting]
Replies: 48
Views: 3100

When do YOU pull the trigger for TLH? [Tax Loss Harvesting]

What is your personal rule or threshold for tax loss harvesting?

When your losses across all lots total $1000? $3000? $500?
by JustinR
Tue Oct 30, 2018 8:10 pm
Forum: Investing - Theory, News & General
Topic: PhysicianOnFire blog: "Tax Loss Harvesting with Vanguard: A Step by Step Guide"
Replies: 82
Views: 9160

Re: PhysicianOnFire blog: "Tax Loss Harvesting with Vanguard: A Step by Step Guide"

Thank you for this excellent guide. Two questions: 1) Do online tax preparation sites like TurboTax and TaxAct make recording tax losses, and tax losses rolled over from previous years, easy? 2) You're lowering your cost basis, which means you'll pay more on taxes later on right? This is still a ne...
by JustinR
Tue Oct 30, 2018 1:58 am
Forum: Investing - Theory, News & General
Topic: Debunking Bonds in Taxable
Replies: 99
Views: 10385

Re: Debunking Bonds in Taxable

I personally won't do it because I may not want to wait till retirement to use may taxable funds. Right. That's my reason for keeping most of the bonds in taxable space, and you are first to mention it. Money is not fungible, there is a 10% penalty to take it out of tax-disadvantaged accounts. I ha...
by JustinR
Mon Oct 29, 2018 1:56 pm
Forum: Investing - Theory, News & General
Topic: PhysicianOnFire blog: "Tax Loss Harvesting with Vanguard: A Step by Step Guide"
Replies: 82
Views: 9160

Re: PhysicianOnFire blog: "Tax Loss Harvesting with Vanguard: A Step by Step Guide"

Thank you for this excellent guide. Two questions: 1) Do online tax preparation sites like TurboTax and TaxAct make recording tax losses, and tax losses rolled over from previous years, easy? 2) You're lowering your cost basis, which means you'll pay more on taxes later on right? This is still a ne...
by JustinR
Sun Oct 28, 2018 11:22 pm
Forum: Investing - Theory, News & General
Topic: Debunking Bonds in Taxable
Replies: 99
Views: 10385

Re: Debunking Bonds in Taxable

The bonds in taxable argument is false. This is easy enough to prove with historical performance and math. 1) Find out last year's performance (from Dec 31, 2016 to Dec 31, 2017) for: VTSAX VTIAX VBTLX 2) Use Triceratop's tax efficiency spreadsheet to figure out distributions: https://www.bogleheads...
by JustinR
Sat Oct 27, 2018 7:25 pm
Forum: Investing - Theory, News & General
Topic: Being true to my IPS, or violating it?
Replies: 22
Views: 2004

Re: Being true to my IPS, or violating it?

I'd say decide what you want to do, wait 6 months to a year, then execute it.

At the very least, wait until this "downturn" is over and the market stabilizes before changing anything.
by JustinR
Fri Oct 26, 2018 8:10 pm
Forum: Investing - Theory, News & General
Topic: Compounding interest?
Replies: 51
Views: 5311

Re: Compounding interest?

... -- If it pays a dividend, the investor gets to decide what to do with it; he still has the same portion of the company as he bought plus something else. If that something else is an investment, he has the potential to make more profit now than he started with. The value of his holdings have gro...
by JustinR
Fri Oct 26, 2018 4:31 am
Forum: Investing - Theory, News & General
Topic: Compounding interest?
Replies: 51
Views: 5311

Re: Compounding interest?

Stocks don't earn interest, so they don't compound in the same sense as a savings bank account.

They only "compound" in a theoretical sense, by hopefully growing every year.
by JustinR
Thu Oct 25, 2018 1:53 am
Forum: Investing - Theory, News & General
Topic: PhysicianOnFire blog: "Tax Loss Harvesting with Vanguard: A Step by Step Guide"
Replies: 82
Views: 9160

Re: PhysicianOnFire blog: "Tax Loss Harvesting with Vanguard: A Step by Step Guide"

I'd like to sell VTIAX in my taxable account.

I automatically reinvested dividends for VTIAX in my RothIRA on 9/25.

1) This means the earliest I can sell VTIAX in my taxable for TLH is 10/26, is that right?

2) Do you think VFWAX is "substantially unidentical" enough from VTIAX for TLH?
by JustinR
Thu Oct 25, 2018 1:45 am
Forum: Investing - Theory, News & General
Topic: TLH -> Non-qualified Dividend
Replies: 18
Views: 1189

Re: TLH -> Non-qualified Dividend

Wait, so here's an example:

I already own 100 shares of VTSAX.
I buy 2 more shares on 9/1.
On 9/25 there's a dividend.
I sell those 2 shares on 10/20.
The portion of the dividend from those 2 shares are non-qualified?
by JustinR
Mon Oct 22, 2018 3:59 pm
Forum: Investing - Theory, News & General
Topic: Shouldn't Fridays be higher than average due to 401k contributions?
Replies: 44
Views: 3216

Re: Shouldn't Fridays be higher than average due to 401k contributions?

Tens of millions of people automatically buy on Fridays. Does that make Fridays higher on average than other days? If not, why? Tens of millions of people automatically buy on days that aren't Friday, also! Who says that Friday is a higher purchase day than others? cheers, jwf Because payday for al...
by JustinR
Mon Oct 22, 2018 3:47 pm
Forum: Investing - Theory, News & General
Topic: Shouldn't Fridays be higher than average due to 401k contributions?
Replies: 44
Views: 3216

Re: Shouldn't Fridays be higher than average due to 401k contributions?

Tens of millions of people automatically buy on Fridays. Does that make Fridays higher on average than other days? If not, why? Tens of millions of people automatically buy on days that aren't Friday, also! Who says that Friday is a higher purchase day than others? cheers, jwf Because payday for al...
by JustinR
Mon Oct 22, 2018 3:40 pm
Forum: Investing - Theory, News & General
Topic: Shouldn't Fridays be higher than average due to 401k contributions?
Replies: 44
Views: 3216

Shouldn't Fridays be higher than average due to 401k contributions?

Tens of millions of people automatically buy on Fridays. Shouldn't this make Fridays noticeably higher on average than other days? If not, why?
by JustinR
Sun Oct 21, 2018 8:24 pm
Forum: Investing - Theory, News & General
Topic: Understanding Rebalancing, Annual vs on New Cash Inputs
Replies: 4
Views: 504

Re: Understanding Rebalancing, Annual vs on New Cash Inputs

You're always supposed to "rebalance" with new cash.

The 1x a year thing is just a rule of thumb about how frequent you should do a "whole portfolio" rebalance when your asset allocation has drifted.
by JustinR
Sun Oct 21, 2018 5:14 pm
Forum: Investing - Theory, News & General
Topic: PhysicianOnFire blog: "Tax Loss Harvesting with Vanguard: A Step by Step Guide"
Replies: 82
Views: 9160

Re: PhysicianOnFire blog: "Tax Loss Harvesting with Vanguard: A Step by Step Guide"

Another question: there's no implications of how long you've owned the shares right? There is. Shares held less than a year have short-term losses. There are some complexities with muni funds, but I'm not that familiar with the details. What's the difference between short term and long term losses ...
by JustinR
Sun Oct 21, 2018 4:32 pm
Forum: Investing - Theory, News & General
Topic: PhysicianOnFire blog: "Tax Loss Harvesting with Vanguard: A Step by Step Guide"
Replies: 82
Views: 9160

Re: PhysicianOnFire blog: "Tax Loss Harvesting with Vanguard: A Step by Step Guide"

Another question: there's no implications of how long you've owned the shares right?
by JustinR
Sun Oct 21, 2018 3:52 am
Forum: Investing - Help with Personal Investments
Topic: Avoiding excess HSA contributions.
Replies: 21
Views: 2125

Re: Avoiding excess HSA contributions.

Gryphon, doing that in combination with pro-rating the employer contribution would seemingly prevent tax issues, but that doesn’t seem to be an option for me. JustinR, I agree. Perhaps they didn’t want to penalize or complicate life for people like me who become HSA eligible at the end of the year ...
by JustinR
Sun Oct 21, 2018 2:27 am
Forum: Investing - Help with Personal Investments
Topic: Avoiding excess HSA contributions.
Replies: 21
Views: 2125

Re: Avoiding excess HSA contributions.

First I'm hearing of this rule.

The last month rule is so freaking weird.

https://www.irs.gov/publications/p969#e ... 1000204049

Why do contributions of a tax year depend on what happens the next year?
by JustinR
Sat Oct 20, 2018 11:12 pm
Forum: Investing - Theory, News & General
Topic: PhysicianOnFire blog: "Tax Loss Harvesting with Vanguard: A Step by Step Guide"
Replies: 82
Views: 9160

Re: PhysicianOnFire blog: "Tax Loss Harvesting with Vanguard: A Step by Step Guide"

Thank you for this excellent guide. Two questions: 1) Do online tax preparation sites like TurboTax and TaxAct make recording tax losses, and tax losses rolled over from previous years, easy? 2) You're lowering your cost basis, which means you'll pay more on taxes later on right? This is still a ne...
by JustinR
Sat Oct 20, 2018 11:04 pm
Forum: Investing - Theory, News & General
Topic: Fidelity and Blackrock employees sue over 401k plans
Replies: 10
Views: 1809

Re: Fidelity and Blackrock employees sue over 401k plans

Aren't people who work at brokerages not allowed to invest in their own funds? Or is it just their own platform?
by JustinR
Sat Oct 20, 2018 7:01 pm
Forum: Investing - Theory, News & General
Topic: Help me understand dividends
Replies: 146
Views: 13168

Re: Help me understand dividends

Yes the return is the exactly same. But no the end state is not the same. I'll do an example of my own, tell me where you think it is wrong. 1) Company XYZ has two owners, A and B. 2) Each owns 100 shares of the company, which has 200 shares outstanding priced at $1 per share 3) The company has $2 ...
by JustinR
Sat Oct 20, 2018 5:59 pm
Forum: Investing - Theory, News & General
Topic: Is it "naive" to just use Boglehead philosophies with extremely large amounts of money?
Replies: 4
Views: 1330

Re: Is it "naive" to just use Boglehead philosophies with extremely large amounts of money?

No it's not. Those people don't know what they're talking about.

It really is that simple and it scales to any amount of money.