Search found 4418 matches

by House Blend
Fri Jul 13, 2018 10:58 am
Forum: Investing - Theory, News & General
Topic: Total returns
Replies: 20
Views: 1648

Re: Total returns

But now looking at my vtsax, the difference between the benchmark of 21.19% and 21.17% of vtsax's total return in 2017, is a difference of .02%, not the ER of .04%. Do you know why could be? https://investor.vanguard.com/mutual-funds/profile/performance/vtsax/cumulative-returns I would wager that m...
by House Blend
Fri Jul 13, 2018 9:36 am
Forum: Investing - Theory, News & General
Topic: Total returns
Replies: 20
Views: 1648

Re: Total returns

Subtracting the expense ratios off the top of these returns gives me 27.44% and 27.23% which are no where near the benchmarks. So there must be some other math in here as suggested. Others have already pointed out that you should have *added* the expense ratio to the fund returns. Let me add that f...
by House Blend
Thu Jul 12, 2018 9:31 pm
Forum: Investing - Help with Personal Investments
Topic: when is it better to take short term capital gain
Replies: 6
Views: 697

Re: when is it better to take short term capital gain

If you have capital losses exceeding your gains, it doesn't matter whether your gain is short-term or long-term (unless you have both types of gains in the year that your carryovers run out). Therefore, it is worth taking a short-term gain instead of a slightly larger long-term gain. Agreed. Here's...
by House Blend
Thu Jul 12, 2018 11:39 am
Forum: Investing - Theory, News & General
Topic: Bucket Portfolio article by Christine Benz
Replies: 85
Views: 6208

Re: Bucket Portfolio article by Christine Benz

Here's what my 85yo mother's withdrawal "strategy" looks like: Her gross income in 2017 from all sources (pension, RMDs, dividends from taxable) was X. Her 2017 spending (including income tax) was about 70% of X. Yes, if you have a big pension that, together with SS more than covers your expenses, ...
by House Blend
Thu Jul 12, 2018 10:36 am
Forum: Investing - Theory, News & General
Topic: Bucket Portfolio article by Christine Benz
Replies: 85
Views: 6208

Re: Bucket Portfolio article by Christine Benz

Here's what my 85yo mother's withdrawal "strategy" looks like: Her gross income in 2017 from all sources (pension, RMDs, dividends from taxable) was X. Her 2017 spending (including income tax) was about 70% of X. It's been like that for several years. Buckets aren't even in the conversation. The onl...
by House Blend
Wed Jul 11, 2018 10:57 am
Forum: Investing - Theory, News & General
Topic: Six stocks make up 98% of S&P 500 gains in 2018
Replies: 76
Views: 9485

Re: Six stocks make up 98% of S&P 500 gains in 2018

The only meaningful way to attribute proportions of returns to a (cap weighted) index is by market cap. I assume they did that? I think you misunderstand what I meant. For example the 10 largest holdings in VFINX account for ~22% of the assets (as of 5/31/18). So they account for ~22% of the return...
by House Blend
Wed Jul 11, 2018 10:25 am
Forum: Investing - Theory, News & General
Topic: Market Timing - A fool's game?
Replies: 28
Views: 2116

Re: Market Timing - A fool's game?

I have to confess something...i'm in charge of deploying my wife and my savings and for our monthly contribution to taxable account (VFIAX), I've always noticed "bad habit dies hard" because i can't help but wanting to "optimize" my entry into the market on a daily basis depending on which directio...
by House Blend
Wed Jul 11, 2018 10:07 am
Forum: Investing - Theory, News & General
Topic: Six stocks make up 98% of S&P 500 gains in 2018
Replies: 76
Views: 9485

Re: Six stocks make up 98% of S&P 500 gains in 2018

The only meaningful way to attribute proportions of returns to a (cap weighted) index is by market cap. I assume they did that? I think you misunderstand what I meant. For example the 10 largest holdings in VFINX account for ~22% of the assets (as of 5/31/18). So they account for ~22% of the return...
by House Blend
Wed Jul 11, 2018 9:28 am
Forum: Investing - Theory, News & General
Topic: Six stocks make up 98% of S&P 500 gains in 2018
Replies: 76
Views: 9485

Re: Six stocks make up 98% of S&P 500 gains in 2018

My thoughts are My thoughts: this is useless nonsense. To CNBC: Why not go with a clickbaitier headline, and point out that the top 10 stocks *trounced* the 500 index, rather than having a mere 6 that come close? The only meaningful way to attribute proportions of returns to a (cap weighted) index ...
by House Blend
Wed Jul 11, 2018 8:49 am
Forum: Investing - Theory, News & General
Topic: "15 Things You Didn't Know About Vanguard Group"
Replies: 13
Views: 3477

Re: "15 Things You Didn't Know About Vanguard Group"

(part of) #5:In 2017, 9 out of every 10 dollars invested in the United States went through Vanguard Can this be right? Only 10% of people using individual stocks or bonds, Fidelity, Schwab, Blackrock (including iShares) etc. for their new investments? For what it's worth, searching for the quote on...
by House Blend
Mon Jul 09, 2018 12:11 pm
Forum: Investing - Help with Personal Investments
Topic: Did I screwup and create a wash sale? First try at tax loss harvest
Replies: 13
Views: 1201

Re: Did I screwup and create a wash sale? First try at tax loss harvest

I might have screwed up big time. I converted 11k worth of VTSAX to VTIAX in my spouse's Roth IRA within 30 days of the 07/02/2018 sale where I was trying to harvest $3400 of losses. I'm pretty disheartened at this point, I guess I can't claim any of those losses at all? If my tax software can't do...
by House Blend
Tue Jul 03, 2018 9:29 am
Forum: Investing - Theory, News & General
Topic: Does the ROTH IRA force us to rebalance in January?
Replies: 24
Views: 1406

Re: Does the ROTH IRA force us to rebalance in January?

My thought is that realizing gains when I don't need to is sub-optimal. Either way, every dollar is invested immediately. Agreed. Realizing capital gains when you have enough cash flow to eventually max out the Roth IRA would be a mistake IMO. (Exception if you pay 0% tax on LT cap gains.) Note tha...
by House Blend
Mon Jul 02, 2018 1:06 pm
Forum: Investing - Help with Personal Investments
Topic: How to find a complete list of 403b fees in TIAA plan?
Replies: 9
Views: 443

Re: How to find a complete list of 403b fees in TIAA plan?

I think your employer pays TIAA certain management fees, so all we investors need worry about is the stated Expense Ratio. TIAA doesn't charge us an additional $xx per quarter to invest with them. In case it isn't clear to others reading along, that's completely wrong. TIAA is able and willing to s...
by House Blend
Sun Jul 01, 2018 7:34 pm
Forum: Personal Finance (Not Investing)
Topic: Required minimum distributions from IRA
Replies: 18
Views: 1442

Re: Required minimum distributions from IRA

This is especially the case given that RMD's for multiple IRA's can be combined and removed from only one IRA. So the financial institution wouldn't know whether you've already paid it or not. For 403b's or other retirement account types where the RMD *must* come for that specific account, and can'...
by House Blend
Sat Jun 30, 2018 6:48 pm
Forum: Investing - Theory, News & General
Topic: Are tip funds and etfs exempt from state taxes just like indiv tips ?
Replies: 5
Views: 512

Re: Are tip funds and etfs exempt from state taxes just like indiv tips ?

with holding vtip etc is that also exempt in taxable accounts ? Whether it is taxable by the state depends on your state tax laws. It's true that states cannot tax interest from US gov obligations. However, as an investor who owns shares in a mutual fund or ETF, you are not the owner of record of a...
by House Blend
Thu Jun 28, 2018 9:13 pm
Forum: Investing - Help with Personal Investments
Topic: [Tax Lost Harvesting Question, non-qualified dividends]
Replies: 2
Views: 204

Re: [Tax Lost Harvesting Question, non-qualified dividends]

I am also planning on TLH VTIAX for VFWAX as above. I do not currently own any VFWAX. I have several lots of VTIAX with losses that I have held for more than 61 days (and thus the recent dividend is qualified for whatever percentage is declared as qualified). I also have 2 lots with losses that I h...
by House Blend
Wed Jun 27, 2018 9:26 am
Forum: Investing - Theory, News & General
Topic: Is there a way to avoid bad companies in S&P 500?
Replies: 92
Views: 4478

Re: Is there a way to avoid bad companies in S&P 500?

Most of the S&P 500 companies disappear or change in 50 years. Is there a way to filter out terrible companies? Because if you buy the haystack, there has to be a few bad eggs out there. The difficulty is, because of the positive skew in the distribution of returns for S&P 500 stocks, nearly half o...
by House Blend
Mon Jun 25, 2018 8:55 pm
Forum: Investing - Help with Personal Investments
Topic: using CDs and bonds to generate tax losses
Replies: 7
Views: 796

Re: using CDs and bonds to generate tax losses

Just a question (because I really don't know the answer)... Can a loss on CDs due to EWP be claimed as a capital loss? If so, do you determine LT or ST by how long you've owned the CD? Actually Line 30 on the Form 1040 is dedicated to this one purpose--claiming a penalty on early withdrawal. It's o...
by House Blend
Wed Jun 20, 2018 10:44 am
Forum: Investing - Help with Personal Investments
Topic: Changing from Average Cost basis to Spec ID
Replies: 4
Views: 494

Re: Changing from Average Cost basis to Spec ID

Yes you can do this, and yes I would do it. * You get a harvested loss of $10,000 * You eliminate all of your non-covered and averaged shares Win win. You could switch from Average Basis to Spec ID today, without any sales, but it wouldn't alter the fact that you have old purchases whose costs are a...
by House Blend
Tue Jun 19, 2018 4:11 pm
Forum: Investing - Help with Personal Investments
Topic: Tax Gain Harvesting
Replies: 24
Views: 1746

Re: Tax Gain Harvesting

Is anyone planning to do Tax Gain Harvest to take advantage of the new low tax rate? :moneybag The tax rates on long term capital gains have not changed. So there's no extra incentive for tax gain harvesting this year as opposed to last year. (The new tax law does have effects on deductions. Many t...
by House Blend
Sat Jun 16, 2018 11:44 am
Forum: Investing - Help with Personal Investments
Topic: Roth conversion advice - charitable beneficiaries
Replies: 6
Views: 535

Re: Roth conversion advice - charitable beneficiaries

2. If I understand you correctly, you're saying that if, later on, our spending needs exceed SS + RMDs, such that additional IRA withdrawals become necessary, take from Roth. Right? Sounds like you already have Roth accounts. If your estate will go to charity, then it can be considered a miscalcula...
by House Blend
Fri Jun 15, 2018 9:05 pm
Forum: Investing - Help with Personal Investments
Topic: Roth conversion advice - charitable beneficiaries
Replies: 6
Views: 535

Re: Roth conversion advice - charitable beneficiaries

A few comments: 1. Once you start SS income, your marginal tax rate may increase. This is true even if your entire IRA gets donated to charity and you never have any RMDs. It's a bit more subtle than just having more income. See https://www.bogleheads.org/wiki/Taxation_of_Social_Security_benefits 2....
by House Blend
Mon Jun 11, 2018 1:51 pm
Forum: Personal Consumer Issues
Topic: Documentaries to recommend?
Replies: 158
Views: 25126

Re: Documentaries to recommend?

American Experience is a terrific documentary series produced by public television that digs into neglected parts of US history. I recently saw an episode (released in January) that I highly recommend: The Secret of Tuxedo Park . https://www.pbs.org/video/the-secret-of-tuxedo-park-zfeomc/ To a larg...
by House Blend
Mon Jun 11, 2018 9:00 am
Forum: Investing - Theory, News & General
Topic: Don’t cheat yourself with the 4% rule
Replies: 159
Views: 18349

Re: Don’t cheat yourself with the 4% rule

That's interesting but doesn't work for recent years where bonds were paying less, and the combined total was less. I think everybody has generally accepted that 4% was based on betting on a single economy and getting lucky, and virtually nobody suggests relying on that now. So you lose half a perc...
by House Blend
Fri Jun 08, 2018 10:49 am
Forum: Investing - Theory, News & General
Topic: Withdraw from TIRA or Roth, it doesn't matter?
Replies: 14
Views: 1172

Re: Withdraw from TIRA or Roth, it doesn't matter?

Generally, you should Roth convert only if you believe that your current tax rate is low compared to some future tax rate you will face. Also, you should withdraw from any flavor of IRA only if you are forced (RMD), or you need the money for current expenses. It's true that both circumstances could ...
by House Blend
Sat Jun 02, 2018 7:22 pm
Forum: Investing - Help with Personal Investments
Topic: TIAA commingles Roth and non-Roth retirement funds?
Replies: 14
Views: 1118

Re: TIAA commingles Roth and non-Roth retirement funds?

If you are at a 403(b) type institution is possible that you have access to multiple providers. E.g., TIAA and Fidelity. So even if TIAA and Fidelity both do the same dumb commingling of Roth and traditional contributions, there would be nothing stopping you from splitting your 403(b) contributions ...
by House Blend
Tue May 22, 2018 8:32 pm
Forum: Personal Finance (Not Investing)
Topic: How are dividends from Vanguard taxed?
Replies: 9
Views: 866

Re: How are dividends from Vanguard taxed?

"Qualified" dividends are taxed at the long term capital gains rate. Most dividends from U.S. corporations are "qualified" dividends. Dividends that are not qualified are taxed as ordinary Federal income tax rates. Dividends from REITs are not "qualified" dividends. I also believe that there is a h...
by House Blend
Tue May 22, 2018 9:56 am
Forum: Investing - Theory, News & General
Topic: Roth IRA contributions during semi-retirement?
Replies: 14
Views: 782

Re: Roth IRA contributions during semi-retirement?

...those who semi-retire before age 59 1/2 and still earn a salary Hmm, first two replies involve folks way beyond their 59.5th birthday.... Yes, it makes sense and should be prioritized above any Roth converting. It is pretty much a no-brainer if your total income from all sources (including thing...
by House Blend
Thu May 17, 2018 8:33 pm
Forum: Personal Consumer Issues
Topic: Hot food flavoring (sauces, spices and peppers)
Replies: 51
Views: 3202

Re: Hot food flavoring (sauces, spices and peppers)

Our favorite HOT hot sauce is Sambal Oelek, a Thai chili paste. It packs a wallop and is flavorful, too. Me too. We call it "nuke sauce" chez Blend. Way more useful than Sriracha IMO. I use it in most stir-frys. We have a few other go-tos, such as Tabasco-ish pepper sauces. Love the Mango-Tomatillo...
by House Blend
Fri May 11, 2018 9:55 am
Forum: Investing - Help with Personal Investments
Topic: Better to Sell Shares appreciated 10% for Short Term Gain or Shares appreciated 30+% for Long Term Gain?
Replies: 10
Views: 1104

Re: Better to Sell Shares appreciated 10% for Short Term Gain or Shares appreciated 30+% for Long Term Gain?

From The numbers you gave, it sounds like selling the short term assets will generate less of a tax hit (~$1660) than the long term assets (~$2300) to liquidate $50k. This will, in turn, use up less of your carried losses, allowing you to use more against your ordinary income. Huh? The way I read t...
by House Blend
Fri May 11, 2018 9:13 am
Forum: Investing - Theory, News & General
Topic: Questions about RMDs
Replies: 41
Views: 5635

Re: Questions about RMDs

2015 – 10 months in NJ + 2 months in Arizona Tax exempt interest dividend from Box 10 and on line 8b:2,411 Social Security: 20A $15,515, 20b $1,416 AGI $19,078 (which includes: Unemployment $10,340 + Wages $5,831 and interest) [...snip...] 4 different years with different AGIs and living in 2 diffe...
by House Blend
Thu May 10, 2018 9:06 pm
Forum: Investing - Help with Personal Investments
Topic: Better to Sell Shares appreciated 10% for Short Term Gain or Shares appreciated 30+% for Long Term Gain?
Replies: 10
Views: 1104

Re: Better to Sell Shares appreciated 10% for Short Term Gain or Shares appreciated 30+% for Long Term Gain?

I have stockpiled about $7000 in losses, a mix of short term and long term, and would certainly prefer not to use up these losses as I have over $3000 in taxable dividend income a year. Selling the long term gainers would pretty much use up my losses. I'm pretty good about harvesting losses but pic...
by House Blend
Thu May 10, 2018 9:45 am
Forum: Investing - Theory, News & General
Topic: Questions about RMDs
Replies: 41
Views: 5635

Re: Questions about RMDs

House blend wrote (and I thank you for your time): And neither qualified dividends nor "tax exempt" interest are tax free in your case, because you are in the middle of the SS tax hump. In fact, your marginal tax rate on both muni bond interest and qualified dividends is 0.85 * 12% = 10.2%. A test ...
by House Blend
Wed May 09, 2018 10:58 am
Forum: Investing - Theory, News & General
Topic: Don't leave your non-spouse heirs TIRAs with basis, unless you hate them!
Replies: 92
Views: 8948

Re: Don't leave your non-spouse heirs TIRAs with basis, unless you hate them!

You're right, by separating the pre-tax dollars and rolling them into my 401k, I could have converted the remaining basis or already-taxed dollars in my tIRA at zero tax cost in year 1, and all future growth of that money will be tax free in the Roth. What about year 2? Of course if your 401(k) won...
by House Blend
Wed May 09, 2018 10:15 am
Forum: Investing - Theory, News & General
Topic: Questions about RMDs
Replies: 41
Views: 5635

Re: Questions about RMDs

^Agreed. Certainly it depends on the details. I think for Singles, it is common to cross over from the 12% to the 22% bracket before moving beyond the SS tax hump. One also needs to look at crossing IRMAA thresholds. In any case, my main point is that a Roth conversion for the OP isn't a no brainer....
by House Blend
Wed May 09, 2018 10:06 am
Forum: Investing - Theory, News & General
Topic: Rationale for placing high expected return funds in Roth rather than tIRA
Replies: 15
Views: 1250

Re: Rationale for placing high expected return funds in Roth rather than tIRA

Welcome to the forum. The most common explanation you see on this forum is something like "you want high-risk assets in a Roth, because you want more of the growth to be tax free". As explanations go, it's a poor one. More precisely, it's a gross oversimplification and easily misunderstood as a free...
by House Blend
Tue May 08, 2018 11:57 am
Forum: Investing - Theory, News & General
Topic: Don't leave your non-spouse heirs TIRAs with basis, unless you hate them!
Replies: 92
Views: 8948

Re: Don't leave your non-spouse heirs TIRAs with basis, unless you hate them!

Why not roll the IRA into the 401k now? That was a possibility when I started converting, although not sure I could have rolled the entire tIRA into my 401k because my tIRA has a 50/50 mix of already taxed and untaxed money, but the 401k is all untaxed. Also, I figured that leaving it in the tIRA a...
by House Blend
Tue May 08, 2018 11:42 am
Forum: Investing - Theory, News & General
Topic: Don't leave your non-spouse heirs TIRAs with basis, unless you hate them!
Replies: 92
Views: 8948

Re: Don't leave your non-spouse heirs TIRAs with basis, unless you hate them!

... but I would assume that whenever you do a QCD from an IRA that has a nonzero basis, you would still have to prorate that basis. ... I haven't checked the Code, Regulations, legislative history or other IRS guidance. However, Publication 590-B says (on page 13) that you don't prorate. The QCD co...
by House Blend
Tue May 08, 2018 11:05 am
Forum: Investing - Theory, News & General
Topic: Total Bond - SEC yield breaks 3%
Replies: 104
Views: 12827

Re: Total Bond - SEC yield breaks 3%

For someone who is interested in Treasuries, CDs, AA and above munis etc., I think I would now say, "Go ahead and buy the individual bonds" A fund of treasury bonds is not fundamentally better than a ladder of individual issues, after all. Now, most people who buy individual bonds will ultimately e...
by House Blend
Tue May 08, 2018 10:34 am
Forum: Investing - Theory, News & General
Topic: Questions about RMDs
Replies: 41
Views: 5635

Re: Questions about RMDs

Did 3 different Taxable IRA distributions: Taxable IRA distributions Taxes due Tax Bracket $16,750.00 $881.00 12% $21,750.00 $1,976.00 12% $26,750.00 $3,086.00 12% FYI, as you can see from this calculation, you are in the 12% bracket, but your Federal marginal tax rate is about 22%. In fact it's pr...
by House Blend
Sun May 06, 2018 9:32 am
Forum: Investing - Theory, News & General
Topic: Don't leave your non-spouse heirs TIRAs with basis, unless you hate them!
Replies: 92
Views: 8948

Re: Don't leave your non-spouse heirs TIRAs with basis, unless you hate them!

As to the other point, withdraw and donate still requires the painful withdrawal part, ie, the complications of accounting for basis. I don't think your proposal addresses that specific problem, right? Agreed, but at least the headache is over and done with in one tax year. Also, I don't have first...
by House Blend
Sun May 06, 2018 7:35 am
Forum: Investing - Theory, News & General
Topic: Don't leave your non-spouse heirs TIRAs with basis, unless you hate them!
Replies: 92
Views: 8948

Re: Don't leave your non-spouse heirs TIRAs with basis, unless you hate them!

why not donate the whole thing to charity? you would not have to worry about it then at all! Non spouses cannot donate inherited IRAs without first withdrawing the funds. I think. Otherwise a great idea. Keep in mind that you can do Qualified Charitable Distributions from an inherited IRA, but you ...
by House Blend
Fri May 04, 2018 9:51 am
Forum: Investing - Theory, News & General
Topic: Investing is more like poker than chess
Replies: 91
Views: 6697

Re: Investing is more like poker than chess

We're playing the odds when we invest, not solving a math problem. No. Playing the odds *is* math. Playing poker well requires some math skill, as well as some non-math skills such as the ability to bluff occasionally, and avoiding "tells". DIY investing for the long term requires only minimal math...
by House Blend
Fri May 04, 2018 8:25 am
Forum: Investing - Theory, News & General
Topic: Don't leave your non-spouse heirs TIRAs with basis, unless you hate them!
Replies: 92
Views: 8948

Re: Don't leave your non-spouse heirs TIRAs with basis, unless you hate them!

I would use a broader brush:

Don't make non-deductible contributions to an IRA unless a Roth conversion is on the horizon.
by House Blend
Tue May 01, 2018 9:47 am
Forum: Investing - Theory, News & General
Topic: Fixed income windfall allocation: lump sum or steadily buy?
Replies: 43
Views: 2719

Re: Fixed income windfall allocation: lump sum or steadily buy?

I'm firmly on the lump sum side of the debate, but want to point out that the parameters of the decision are not always presented well. That is, especially for a newbie with a lump sum to invest (perhaps an inheritance), the most likely starting point is that he doesn't know or understand his risk t...
by House Blend
Sat Apr 28, 2018 10:20 am
Forum: Investing - Theory, News & General
Topic: Is there any way around short term capital gains taxes?
Replies: 24
Views: 1923

Re: Is there any way around short term capital gains taxes?

when you sell your shares of mutual fund, I believe you get to choose which shares you want to sell but there is some restriction on the choice you make. The choice is irrevocable. Do not confuse this with the year end (or even mid-year) distributions from the fund itself. Right. When selling share...
by House Blend
Fri Apr 27, 2018 9:39 am
Forum: Investing - Theory, News & General
Topic: "Tax-Adjusted Asset Allocation: Is It Necessary?"
Replies: 51
Views: 2951

Re: "Tax-Adjusted Asset Allocation: Is It Necessary?"

It may not be necessary, but I think it's useful to understand the concept. I think it's better to think in terms of tax-adjusted risk than tax-adjusted account value. This makes it easier to think about taxable accounts, for example, since the government may not own any of your account if you don'...
by House Blend
Sun Apr 22, 2018 8:50 am
Forum: Investing - Theory, News & General
Topic: when to rebalance?
Replies: 12
Views: 1130

Re: when to rebalance?

for example, my target asset allocation is 40-60 equities to fixed income. I'm currently sitting at 45-55. My pre-tax space is completely full of fixed income, so rebalancing would incur a large long-term cap gain bill. And were I to rebalance, given recent market volatility, I might find myself wi...
by House Blend
Thu Apr 19, 2018 4:53 pm
Forum: Personal Consumer Issues
Topic: [What TV Show Have You Recently Watched?]
Replies: 719
Views: 78040

Re: Netflix, Your Current Favorite Show

I too recommend "Godless". It was a pleasant surprise to me since I like good old-timey westerns. And at 7-8 hours in length, very binge-able. Yes, a lot of folks are thumb-upping Godless . I'm half way through it and agree that it has been pretty good so far. I think the same crowd is likely to ap...