Search found 4526 matches

by House Blend
Sun Jan 20, 2019 2:56 pm
Forum: Investing - Theory, News & General
Topic: Predicting future Exp. Ratio changes on Vanguard funds...
Replies: 10
Views: 655

Re: Predicting future Exp. Ratio changes on Vanguard funds...

[OT comment removed by admin LadyGeek] For example, some might find it interesting or useful to learn that you can get advanced notice of changes in ER for Vanguard funds by monitoring the Semi-Annual and Annual Reports. The ER experienced by the fund in the previous year, which is something that a...
by House Blend
Sun Jan 20, 2019 10:07 am
Forum: Investing - Theory, News & General
Topic: A Roth In Plan conversion is now available to me.
Replies: 4
Views: 491

Re: A Roth In Plan conversion is now available to me.

2) To me, for the future I don't foresee the need to look into Roth rollovers if I can do an in-plan conversion at any time, but maybe I am missing something. The 457 plan has good funds & expenses, and age withdrawal restrictions shouldn't come into play, so why go through the extra steps of a rol...
by House Blend
Mon Jan 14, 2019 1:00 pm
Forum: Investing - Theory, News & General
Topic: Why No Mid-Cap TIAA Index Fund?
Replies: 6
Views: 420

Re: Why No Mid-Cap TIAA Index Fund?

Any rationale for TIAA to not offer index fund(s) that more directly complement or cover market capitalization? 1. Well, back in the day, TIAA had index funds targeting all 9 of the morningstar style boxes. (Except maybe large cap blend, which you could argue as being covered by the 500 index fund....
by House Blend
Fri Jan 11, 2019 3:24 pm
Forum: Investing - Theory, News & General
Topic: Around 43K in dividends last year - feel good about it ?
Replies: 160
Views: 13527

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

Yes, the livesoft comment is nonsense. Having $14K in taxable dividends is, by itself, nothing to feel bad (or good) about. Nor is paying tax on taxable dividends. Not following. OP should feel bad about receiving dividends, as should anyone. Not that it's his fault for receiving dividends, or that...
by House Blend
Fri Jan 11, 2019 3:16 pm
Forum: Investing - Theory, News & General
Topic: Are index fund managers forced to sell stocks when incurring greater trading?
Replies: 28
Views: 1988

Re: Are index fund managers forced to sell stocks when incurring greater trading?

Does this put index funds at a major disadvantage vs. ETFs? Go look at the data. Look at the actual real-world results. The blue line is an S&P 500 index fund, the Fidelity 500 Index Fund, FXAIX. (I am deliberately not using Vanguard products, so that I don't go down any rabbit holes about Vanguard...
by House Blend
Fri Jan 11, 2019 3:02 pm
Forum: Investing - Theory, News & General
Topic: Around 43K in dividends last year - feel good about it ?
Replies: 160
Views: 13527

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 House Blend
Tue Jan 08, 2019 12:05 pm
Forum: Investing - Theory, News & General
Topic: Differences between Short-term and Long-term Capital Losses
Replies: 3
Views: 445

Re: Differences between Short-term and Long-term Capital Losses

I'm having a difficult time understanding the differences between implications of having short-term vs. long-term losses . Can you recommend a webpage that provides descriptions of how the two differ? My recommendation is to unravel the line by line instructions for Schedule D, which is where it pl...
by House Blend
Tue Jan 08, 2019 11:05 am
Forum: Investing - Theory, News & General
Topic: What am I missing?
Replies: 4
Views: 1129

Re: What am I missing?

I often move cash around between institutions, such as from Ally Bank to Vanguard etc. It seems when I do so, particularly at Vanguard, I start earning interest on the money the day I put the order in. But the money doesn't exit Ally Bank for a couple of days. Am I actually earning interest in both...
by House Blend
Sat Jan 05, 2019 1:07 pm
Forum: Investing - Help with Personal Investments
Topic: Backdoor Roth and TIRA with dividends
Replies: 4
Views: 368

Re: Backdoor Roth and TIRA with dividends

My wife has a Traditional Rollover IRA account that has the traditional 401K contributions that she brought from a previous employer. ($40,000) We made no further contributions into this Rollover IRA I had started a new Traditional IRA with non-deductible contribution of $5500 and did the ROTH conv...
by House Blend
Thu Jan 03, 2019 10:07 pm
Forum: Investing - Help with Personal Investments
Topic: Why large cap index fund is more tax efficient than Small cap index fund ?
Replies: 4
Views: 521

Re: Why large cap index fund is more tax efficient than Small cap index fund ?

Please help me understand why the large cap index fund is more tax efficient than small cap index funds in a taxable account? For example, VSMAX(Vanguard small cap index admiral) versus VFIAX(Vanguard 500 index admiral). Looks like Both have pretty much zero short term/long term capital gains. Look...
by House Blend
Wed Jan 02, 2019 10:23 am
Forum: Investing - Theory, News & General
Topic: Will you contribute the max to your IRA and then invest it all in equities for the first market day of the new year?
Replies: 159
Views: 7747

Re: Will you contribute the max to your IRA and then invest it all in equities for the first market day of the new year?

Math and history says you should. Agreed. I will be doing it tomorrow. You have that exactly backwards. Math and history says that sitting on a lump of cash waiting for January 2 to arrive is worse than investing cash whenever you have cash to invest. You can invest $6,000 or $600,000 on any day th...
by House Blend
Tue Jan 01, 2019 4:21 pm
Forum: Investing - Theory, News & General
Topic: Will you contribute the max to your IRA and then invest it all in equities for the first market day of the new year?
Replies: 159
Views: 7747

Re: Will you contribute the max to your IRA and then invest it all in equities for the first market day of the new year?

Math and history says you should. Agreed. I will be doing it tomorrow. You have that exactly backwards. Math and history says that sitting on a lump of cash waiting for January 2 to arrive is worse than investing cash whenever you have cash to invest. You can invest $6,000 or $600,000 on any day th...
by House Blend
Mon Dec 31, 2018 10:28 am
Forum: Investing - Theory, News & General
Topic: Annuities objectively considered
Replies: 111
Views: 7297

Re: Annuities objectively considered

...As far as I know, TIAA does not offer an SPIA as such. The "lifetime contracts" are still a kind of variable annuity, with payouts determined by growth of the different "vintages" in one's TIAA Traditional account. That means there isn't any obvious way to make an apples-to-apple comparison betw...
by House Blend
Fri Dec 21, 2018 9:33 pm
Forum: Investing - Help with Personal Investments
Topic: mutiple overlapping wash sales triggered by wife's roth
Replies: 2
Views: 420

Re: mutiple overlapping wash sales triggered by wife's roth

If all the accounts were taxable, not IRA, it would depend on how old the oldest 20 shares sold on 12/15 were. The loss on those 20 shares is acquired by the 20 replacement shares. The replacement shares also acquire the purchase date of those 20 oldest shares. They no longer have a purchase date of...
by House Blend
Fri Dec 21, 2018 8:31 pm
Forum: Personal Consumer Issues
Topic: What Movie Have You Recently Watched?
Replies: 4054
Views: 1102581

Re: What Movie Have You Recently Watched?

Five stars for Springsteen on Broadway, on Netflix.

This is a film of his final broadway show. A capitivating mix of storytelling and songs. Much funnier and with much more emotional depth than I expected.
by House Blend
Thu Dec 20, 2018 10:30 am
Forum: Personal Finance (Not Investing)
Topic: Should I TLH now if I have no state tax?
Replies: 4
Views: 584

Re: Should I TLH now if I have no state tax?

For example, suppose I have $50K in capital losses this year and at least that much in capital gains. For federal tax purposes, I would apply the entire loss this year, right? Yes. It's important to understand that once you've realized gains or losses, you have no options about how to use them: rea...
by House Blend
Wed Dec 19, 2018 10:33 pm
Forum: Personal Finance (Not Investing)
Topic: Should I TLH now if I have no state tax?
Replies: 4
Views: 584

Re: Should I TLH now if I have no state tax?

Let's say your absence covers exactly 2 tax years. I will also assume that you have no carryover losses now, and will not need to realize capital gains in these 2 years. Your first $6K of harvested losses will reduce your Federal taxes for the next two years, in exchange for having to pay LTCG rates...
by House Blend
Tue Dec 18, 2018 9:37 am
Forum: Investing - Theory, News & General
Topic: Are harvesters investing their tax savings when they TLH?
Replies: 5
Views: 475

Re: Are harvesters investing their tax savings when they TLH?

Looks like a question about mental accounting. For someone who budgets exactly $X or Y% of gross per year for investing, and spends the rest, TLH allows them to spend more. But for someone whose spending is decoupled from income, any tax-saving strategy has no effect on spending. The taxes saved get...
by House Blend
Mon Dec 03, 2018 10:22 pm
Forum: Personal Finance (Not Investing)
Topic: Tax Loss Harvesting with Vanguard Short Term Investment Grade Bond Fund Admiral
Replies: 5
Views: 452

Re: Tax Loss Harvesting with Vanguard Short Term Investment Grade Bond Fund Admiral

3. The benefit: $3,000 x 22% marginal tax bracket =$660.00. This can be used to offset my 2018 tax. 4. Benefit to me is reduced by the yield difference of the substitute bond fund: VFSUX: 150,000 x 3.44% = $5,160/12 =$430.00 for one month. VSGDX: 150,000 x 2.78% = $4,170/12 = $347.50 for one month....
by House Blend
Mon Dec 03, 2018 10:43 am
Forum: Investing - Theory, News & General
Topic: "When's the Right Time to Take RMDs?" – (Christine Benz's Latest Column)
Replies: 45
Views: 7305

Re: "When's the Right Time to Take RMDs?" – (Christine Benz's Latest Column)

If I turn 70.5 on Nov. 30 and my RMD for that year is $120k. I want to do a $10k QCD for that year thus my taxable RMD will be $110k ($120k-$10k) for that year. If I start doing RMD withdrawals in Jan of that year at $10k/month then by Nov. I would have fullfilled my RMD ($10kx11=$110k) and the Dec...
by House Blend
Wed Nov 28, 2018 10:00 am
Forum: Investing - Theory, News & General
Topic: Withdrawals
Replies: 11
Views: 1052

Re: Withdrawals

If you hold a three funded portfolio and let’s assume you do your withdrawals in January, which asset do you withdraw from if all the assets are down for the year? You pay no attention to which assets have had positive or negative returns. That's irrelevant. What matters is how much you have in eac...
by House Blend
Mon Nov 26, 2018 10:18 am
Forum: Investing - Theory, News & General
Topic: Why should annuities NOT be held in tax-deferred accounts?
Replies: 23
Views: 1793

Re: Why should annuities NOT be held in tax-deferred accounts?

I keep hearing (and read a comment about this again here on BH a short time ago) that annuities shouldn't be held in tax-deferred accounts. Why? That's because most people don't understand TIAA, or prefer not to. Making blanket statements that are false is a popular indoor sport; many prefer to lea...
by House Blend
Sun Nov 25, 2018 11:22 am
Forum: Investing - Theory, News & General
Topic: Advisor Perspectives Article: Are You Paying For Liquidity You Don’t Need?
Replies: 45
Views: 3341

Re: Advisor Perspectives Article: Are You Paying For Liquidity You Don’t Need?

I own a large stake of the most illiquid form of Traditional, but don’t see the relevance to general idea of this thread: a basket of stocks can converge to a value of $0; that’s not true of Traditional. Forgive me for responding to the content of the article mentioned in the OP. I didn't realize t...
by House Blend
Sun Nov 25, 2018 11:12 am
Forum: Personal Consumer Issues
Topic: What’s your “barometer” for luxury purchases?
Replies: 72
Views: 5571

Re: What’s your “barometer” for luxury purchases?

Great answer, but may I pose a hypothetical? What if you found a good or service you liked that always costs 10% more and is 10% better at each tier? There eventually would be a point you might stop right, as surely you don’t have infinite dollars. How might you decide here? Everything has diminish...
by House Blend
Sun Nov 25, 2018 10:51 am
Forum: Investing - Theory, News & General
Topic: Advisor Perspectives Article: Are You Paying For Liquidity You Don’t Need?
Replies: 45
Views: 3341

Re: Advisor Perspectives Article: Are You Paying For Liquidity You Don’t Need?

Folks with access to TIAA Traditional see a version of this trade-off first hand. There are "liquid" and "non-liquid" versions of Traditional, the difference being that you cannot trade *out* of the non-liquid form except in 10 annual payments. (In retirement there are more options, including taking...
by House Blend
Sat Nov 24, 2018 8:07 am
Forum: Investing - Theory, News & General
Topic: Reducing number of funds by supplementing LifeStrategy
Replies: 16
Views: 2208

Re: Reducing number of funds by supplementing LifeStrategy

Our Olde advisor said to never use balanced funds because it’s better to have stocks and bonds separately held in the event one needs to sell some off . Then sell the one that is doing well . Makes sense too., don’t you think? Certainly if you have separate funds you should prioritize withdrawals f...
by House Blend
Thu Nov 22, 2018 3:04 pm
Forum: Investing - Theory, News & General
Topic: New to taxable investments
Replies: 21
Views: 2075

Re: New to taxable investments

I've read through many threads advising that one should keep their own records because Vanguard at times does not correctly report the cost basis. Some have advised excel, but this literally involves entering data on my own. I assume more official evidence of purchase must be kept. Each time you bu...
by House Blend
Thu Nov 22, 2018 2:12 pm
Forum: Investing - Theory, News & General
Topic: What's in your Investor Policy Statement about Bear Markets?
Replies: 52
Views: 3579

Re: What's in your Investor Policy Statement about Bear Markets?

Maintain asset allocation and rebalance only when it reaches 10% band. Same here, except my rebalancing band is ±5%. My current target is 45% stock. Right now I'm at 43.9% stock. In order for my portfolio to hit 40% stock, assuming the fixed-income portion remains constant, the value of the stock w...
by House Blend
Thu Nov 22, 2018 12:00 pm
Forum: Investing - Theory, News & General
Topic: Taxable Account in Retirement: What Is Reason to Direct Dividends to MM for Spending/Not Reinvest?
Replies: 21
Views: 2283

Re: Taxable Account in Retirement: What Is Reason to Direct Dividends to MM for Spending/Not Reinvest?

In retirement most people need money from their investments to satisfy their expenses/lifestyle (some may have pensions that more than cover spending, but put those aside). So you need to sell some assets. 1. Dividends can be (should be?) thought of as forced sales of that investment. You don't hav...
by House Blend
Thu Nov 22, 2018 10:48 am
Forum: Investing - Theory, News & General
Topic: Bond fund - munis vs. taxable
Replies: 11
Views: 1363

Re: Bond fund - munis vs. taxable

Therefore, it seems if I am holding bonds in my taxable account, tax-exempt bonds are currently the way to go. However, I have a CD worth $29k maturing in a couple months. I am considering one of two options: 1. Put it in Intermediate term tax exempt in taxable account 2. Use it to buy Total Stock ...
by House Blend
Tue Nov 20, 2018 10:27 am
Forum: Investing - Theory, News & General
Topic: timing muni bond fund sale to maximize tax benefits
Replies: 14
Views: 995

Re: timing muni bond fund sale to maximize tax benefits

One thing I've wondered about this process is, how fast does the NAV get built up in anticipation of the dividend? Does the build up for the next dividend begin right after the last dividend was paid or is there a big build up in the few days or few hours before the dividend is paid? Or am I off-ba...
by House Blend
Mon Nov 19, 2018 11:11 am
Forum: Investing - Theory, News & General
Topic: timing muni bond fund sale to maximize tax benefits
Replies: 14
Views: 995

Re: timing muni bond fund sale to maximize tax benefits

If I am going to sell a muni bond fund that accrues and distributes dividends monthly, am I correct to say that I should sell right after the dividend is paid? I know that the fund NAV will drop when the dividend is paid (so I should end up with the same amount of money, assuming equally spaced cou...
by House Blend
Mon Nov 19, 2018 10:25 am
Forum: Investing - Theory, News & General
Topic: Ed Slott & Roth Conversions
Replies: 45
Views: 3658

Re: Ed Slott & Roth Conversions

One thing I always warn about yet seldom see mentioned by the "experts" is ignoring end-of-life medical expenses as a way to spend down a TIRA at 0%. My parents did not have long-term care insurance yet both end-up in a nursing home. We spent around $400k of deductible medical expenses over their l...
by House Blend
Wed Nov 14, 2018 9:42 am
Forum: Investing - Theory, News & General
Topic: Asset allocation in Roth vs pre-tax
Replies: 8
Views: 935

Re: Asset allocation in Roth vs pre-tax

Does it make any difference to allocate most risky assets (like stocks) in Roth? I say no, but perhaps I'm missing something. I'd say that to a first approximation, you are right. Going beyond that first approximation, once you understand the principle of tax-adjusted risk, the only thing that dist...
by House Blend
Sat Nov 10, 2018 9:04 am
Forum: Investing - Theory, News & General
Topic: Roth Investment Theory
Replies: 45
Views: 3788

Re: Roth Investment Theory

averagedude wrote:
Sat Nov 10, 2018 8:25 am
The optimal strategy has been to invest it all on the first day you are allowed (Jan 1).
No, the optimal strategy is to invest money when you have it.
Waiting until Jan 1 is worse.
by House Blend
Sat Nov 10, 2018 9:02 am
Forum: Investing - Theory, News & General
Topic: Take taxes into account when rebalancing?
Replies: 44
Views: 2347

Re: Take taxes into account when rebalancing?

When one rebalances based on bands does one just rebalance to the band limit? Or does exceeding the band limit trigger full rebalance to the target AA? Seems like the former might be more appropriate when you having to pay taxes to rebalance. One does whatever one does. There are infinitely many to...
by House Blend
Sat Nov 10, 2018 8:21 am
Forum: Investing - Theory, News & General
Topic: Roth Investment Theory
Replies: 45
Views: 3788

Re: Roth Investment Theory

If you have $5,000 available to invest, you should invest it now.

If you've used up all of your tax-advantaged space for 2018, open a taxable account.

The time to worry about hitting the 2019 maximums for tax advantaged accounts is in 2019. (And BTW, the max for IRAs will be $6,000, not $5,500.)
by House Blend
Fri Nov 09, 2018 10:21 am
Forum: Investing - Theory, News & General
Topic: Good explanation of how bond funds don't get crushed in rising rate environment
Replies: 65
Views: 6790

Re: Good explanation of how bond funds don't get crushed in rising rate environment

Thanks Nisprius, I had always thought of returns from my bond funds as interest rather than dividends. However I learned something from you today. If you hold your bonds in a fund rather than as individual bonds the returns are appropriately characterized as dividends. Sorry for continuing this OT ...
by House Blend
Thu Nov 08, 2018 9:22 pm
Forum: Personal Consumer Issues
Topic: Favorite "free stuff"?
Replies: 137
Views: 10991

Re: Favorite "free stuff"?

Software....

....from the OS on up. Most of what I need I get here
https://www.centos.org/download/
or here
https://dl.fedoraproject.org/pub/epel/
by House Blend
Fri Nov 02, 2018 9:59 am
Forum: Investing - Theory, News & General
Topic: When do YOU pull the trigger for TLH? [Tax Loss Harvesting]
Replies: 53
Views: 4098

Re: When do YOU pull the trigger for TLH?

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 lot of non-substantially identical funds. My threshold is $500, if I can move to an existing fund, and $2000, if I have to in...
by House Blend
Mon Oct 29, 2018 9:20 am
Forum: Investing - Theory, News & General
Topic: Moving positions between taxable, tax-advantaged, & tax-free accounts
Replies: 3
Views: 505

Re: Moving positions between taxable, tax-advantaged, & tax-free accounts

In retirement, if your equities are mainly in taxable and your bonds in tax-advantaged, then when you need to raise spending cash, you sell equities in taxable and use bonds in tax-advantaged to buy those equity positions back (assuming you want to keep those positions). I’m currently in this posit...
by House Blend
Wed Oct 24, 2018 9:46 am
Forum: Investing - Theory, News & General
Topic: Tax loss harvesting and dividend distribution
Replies: 3
Views: 547

Re: Tax loss harvesting and dividend distribution

The ideal situation when harvesting from A to B is to do it all in one day, with that day cleverly chosen to be after B's distribution and before A's. The distribution in effect gets converted into unrealized cap gains. But it's not always easy to find a suitable B compatible with A in the above sen...
by House Blend
Sun Oct 07, 2018 8:26 pm
Forum: Personal Consumer Issues
Topic: What Movie Have You Recently Watched?
Replies: 4054
Views: 1102581

Re: What Movie Have You Recently Watched?

Beirut (2018). A good spy thriller set in Beirut (mostly) during the early 1980s before the Israeli invasion. It's not a James Bond/Jason Bourne type thriller, but rather in the mold of le Carre. That is, no heroics but plenty of character flaws and shifting alliances. Change the CIA to MI-6 and re...
by House Blend
Sun Oct 07, 2018 7:11 am
Forum: Investing - Theory, News & General
Topic: Do I understand capital loss and carryover correctly?
Replies: 3
Views: 436

Re: Do I understand capital loss and carryover correctly?

It's more complex than that. There are two kinds of losses you must keep track of, long and short. At tax time, you add up your net short term gains and losses for the year and combine them with any carried over short term losses. Then do the same for long term. If one is positive (gains) and the ot...
by House Blend
Fri Oct 05, 2018 9:02 am
Forum: Investing - Theory, News & General
Topic: IRA's and Taxes
Replies: 6
Views: 585

Re: IRA's and Taxes

Thanks. So I am taking it as Roth distributions do not count towards income. In other words in this scenario when filing taxes I would only show 50K of income? Correct? Mostly correct. There are scenarios where you could pay penalties or Federal taxes on Roth withdrawals. But as long as you are at ...
by House Blend
Thu Oct 04, 2018 8:36 pm
Forum: Investing - Help with Personal Investments
Topic: Equities in taxable account, Bonds in IRA, which to withdraw when Stock Market is down?
Replies: 7
Views: 780

Re: Equities in taxable account, Bonds in IRA, which to withdraw when Stock Market is down?

Myself having only taxable accounts, I am not super familiar with IRAs. So aside from rebalancing, which I understand, you are suggesting selling stocks (total domestic stock index) from the taxable funds, even when the market is down, is preferable to selling bonds from the IRA funds after the RMD...
by House Blend
Thu Oct 04, 2018 4:46 pm
Forum: Investing - Help with Personal Investments
Topic: Equities in taxable account, Bonds in IRA, which to withdraw when Stock Market is down?
Replies: 7
Views: 780

Re: Equities in taxable account, Bonds in IRA, which to withdraw when Stock Market is down?

First, the equity funds in taxable should be set to distribute dividends in cash, not reinvested. Second, you need to separate the question of which account to tap versus the question of which asset class to tap. And you (or rather the anonymous "someone") should not let the relative sizes of your a...
by House Blend
Tue Oct 02, 2018 8:04 am
Forum: Investing - Theory, News & General
Topic: Paying expenses out of pocket in tax-advantaged accounts?
Replies: 11
Views: 1316

Re: Paying expenses out of pocket in tax-advantaged accounts?

I don't know how much it can impact someone's portfolio performance but even some VG funds have 0.30 - 0.45% ER. I was wondering if those could be paid by billing the investor so that expenses are not taken out of contributions. It was not clear to me how the ER's are taken out of the accounts. In ...
by House Blend
Fri Sep 28, 2018 8:36 am
Forum: Investing - Help with Personal Investments
Topic: VG PAS Recommendations - Surprised/Disappointed?
Replies: 27
Views: 2947

Re: VG PAS Recommendations - Surprised/Disappointed?

For the 3 muni bond funds (about equal weight of each), long-term is there because it has a higher yield. But, they acknowledge that brings more risk so they add limited term to balance with a target duration of intermediate. I have to admit I see no logic here unless they are trying to time the ma...
by House Blend
Wed Sep 26, 2018 8:50 am
Forum: Investing - Theory, News & General
Topic: Digging deeper on advisability of Roth Conversions
Replies: 37
Views: 3351

Re: Digging deeper on advisability of Roth Conversions

Does it make sense to add to tax deferred accounts while doing Roth Conversions? While it's true that contributing $10K to tax-deferred and converting $10K to Roth at the same time looks like a two step solution to a one step problem, there can be advantages to separating the events in time. In an ...