Search found 4268 matches

by House Blend
Fri Jan 19, 2018 9:12 pm
Forum: Investing - Theory, News & General
Topic: information about TIAA "revenue sharing" policies
Replies: 5
Views: 604

Re: information about TIAA "revenue sharing" policies

No announcements from my employer on this score. Employer has always paid all recordkeeping fees on our behalf (no details or accounting provided), and since 2012 we employees have been getting free money (Plan Servicing Credits) every year on top of the 0 administrative costs. (This is completely u...
by House Blend
Fri Jan 19, 2018 9:36 am
Forum: Investing - Theory, News & General
Topic: Amazing how much your IPS can de-stress your life
Replies: 29
Views: 3897

Re: Amazing how much your IPS can de-stress your life

InvestInPasta wrote:
Thu Jan 18, 2018 7:09 pm
Can someone post an example of his IPS?!
Just to have an idea of what an IPS looks like.
Try the wiki:
https://www.bogleheads.org/wiki/Investm ... _statement
by House Blend
Fri Jan 19, 2018 9:32 am
Forum: Investing - Theory, News & General
Topic: Rebalancing in last 12 months
Replies: 19
Views: 1377

Re: Rebalancing in last 12 months

My IPS says that I *must* rebalance if certain thresholds are crossed, but it also says that I am *allowed* to make trades at any time for any reason (including phases of the moon or who wins the Super Bowl) as long as two conditions are met: 1. The trade moves the portfolio closer to my allocation ...
by House Blend
Wed Jan 17, 2018 5:00 pm
Forum: Investing - Help with Personal Investments
Topic: rebalancing in a taxable account
Replies: 9
Views: 1124

Re: rebalancing in a taxable account

Selling equities now to try to reduce our equity exposure feels like a tough pill to swallow since we're still in a fairly high tax bracket. Am I over-thinking this with my reluctance to incur capital gains? I think ultimately it boils down to deciding how much risk is too much vs. how much it cost...
by House Blend
Wed Jan 17, 2018 2:17 pm
Forum: Investing - Help with Personal Investments
Topic: Is a Stable Value fund just a Variable Annuity?
Replies: 25
Views: 1577

Re: Is a Stable Value fund just a Variable Annuity?

Is it just that they have a different name so no one realizes they are annuities? Or is there an actual difference? What are the differences? Even if it is true (I have no opinion on that score), there are so many potential differences among insurance contracts labeled "annuities", that calling som...
by House Blend
Sun Jan 14, 2018 8:47 am
Forum: Investing - Theory, News & General
Topic: AA is much harder than I thought...
Replies: 45
Views: 4791

Re: AA is much harder than I thought...

I'm 33 and have only been in the markets about a year. Accept that you won't have a real understanding of your risk tolerance until you've been through a market crash. Just about anyone who started investing after 2010 is in the same boat. In the meantime, it's a good idea to have an allocation to ...
by House Blend
Sun Jan 14, 2018 8:12 am
Forum: Investing - Theory, News & General
Topic: Tax Exempt Bond Funds - Considerations after Tax Reform
Replies: 12
Views: 1859

Re: Tax Exempt Bond Funds - Considerations after Tax Reform

David, Thanks! That makes a lot of sense. The other thing that strikes me is that there is more incentive now to move taxable income to tax-exempt bonds for people who are nearing 157K in taxable income because of that sharp 8% surge in the tax rate that kicks in at that level, from 24% to 32%. The...
by House Blend
Wed Jan 10, 2018 11:56 am
Forum: Investing - Help with Personal Investments
Topic: Taxable Fidelity Account - FSTVX vs ITOT
Replies: 53
Views: 3491

Re: Taxable Fidelity Account - FSTVX vs ITOT

The real problem with a forced capital gains distribution is not that you pay the tax but that it is forced and uncontrollable. +1. If you lose $100 to Federal tax on a distribution of LTCG, and you sell the shares three years later at a profit, it means you paid $100 of the tax three years early. ...
by House Blend
Wed Jan 10, 2018 10:49 am
Forum: Investing - Help with Personal Investments
Topic: Backdoor Roth Mess
Replies: 7
Views: 818

Re: Backdoor Roth Mess

I've considered going ahead and taking the tax hit for converting this Traditional IRA to a Roth IRA, but we live in a state with a high incoming tax (7%) and given we are needing to do a backdoor Roth you can reasonably deduce our federal bracket. We will likely only be residing in this state for ...
by House Blend
Tue Jan 09, 2018 4:21 pm
Forum: Investing - Help with Personal Investments
Topic: Retirement 4/2018 question
Replies: 5
Views: 867

Re: Retirement 4/2018 question

Over age 50? Maxing out the 401(k) would be $24,500 (if employer allows it). Will there be any other taxable income in 2018 besides the job and the LTCG on the sale? For example, will the proceeds of the sale be invested towards retirement and start throwing off taxable income, or used to pay off de...
by House Blend
Tue Jan 09, 2018 12:00 pm
Forum: Investing - Help with Personal Investments
Topic: Do I need $$ in taxable?
Replies: 26
Views: 4058

Re: Do I need $$ in taxable?

3 types of accounts: taxable, tax-deferred and tax-free. The tax-free (Roth) should be the last money you touch (withdraw). It is poised for the best, long-term growth. This is common advice, but if your goal is to maximize your retirement spending and leave nothing behind, it's often wrong. Exampl...
by House Blend
Mon Jan 08, 2018 3:51 pm
Forum: Investing - Help with Personal Investments
Topic: Retirement 4/2018 question
Replies: 5
Views: 867

Re: Retirement 4/2018 question

No (taxable) income in 2018 other than job + $800K in LTCG? There could be a lot of things that *might* matter (state tax?), but the immediate one that comes to mind from the information given is that even though you will be in the highest tax bracket in 2018, your (Federal) marginal tax rate will l...
by House Blend
Sun Jan 07, 2018 9:42 am
Forum: Investing - Help with Personal Investments
Topic: Do I need $$ in taxable?
Replies: 26
Views: 4058

Re: Do I need $$ in taxable?

Ok, I guess I wasn't clear in what I am wondering. Basically, the question is there any reason in retirement to have a taxable account. Why not just use a Roth account in lieu of the taxable? 3 types of accounts: taxable, tax-deferred and tax-free. The tax-free (Roth) should be the last money you t...
by House Blend
Sun Jan 07, 2018 9:19 am
Forum: Investing - Help with Personal Investments
Topic: TIAA traditional is compounded daily, but not at the displayed crediting rate
Replies: 25
Views: 946

Re: TIAA traditional is compounded daily, but not at the displayed crediting rate

Because of the vintage system, understanding what you earn from Traditional is more complex than understanding the difference between APR and APY. Each contribution belongs to a "vintage". In practice, one can think of these as keeping track of the month and year for each contribution. The vintages ...
by House Blend
Fri Jan 05, 2018 3:35 pm
Forum: Personal Finance (Not Investing)
Topic: anyone considering cashing in some 401k money at the new lower tax rate?
Replies: 9
Views: 1171

Re: anyone considering cashing in some 401k money at the new lower tax rate?

However I have no real plans for the money, it would be spent on travel, luxuries, charities maybe some early gifting to dependents. Some might even end up reinvested. I would also be paying California state tax at 9% which of course is done regardless of the Fed tax rate. I know I do not want to e...
by House Blend
Fri Jan 05, 2018 3:12 pm
Forum: Personal Finance (Not Investing)
Topic: question about actual return %
Replies: 4
Views: 466

Re: question about actual return %

i rolled over $48476 in september 2017 to my new employer 401k. since then i contributed $6300 including match. ending balance is $58612 as of today. my gain is $58612 - $48476 = $3836. so $3836 / $58612 x100 i get about 6.5% return. 1. No, because some of the $6300 went in contributions from each ...
by House Blend
Wed Jan 03, 2018 11:42 am
Forum: Personal Finance (Not Investing)
Topic: Converting a Recharacterization
Replies: 2
Views: 216

Re: Converting a Recharacterization

Disclaimer: I'm not familiar with IL state tax. Maybe you should add "IL resident" to the thread title to get some Illini eyeballs. I see two basic options: In both cases, you would first recharacterize back to trad IRA. Option A would be to claim the trad IRA deduction on your 2017 Federal taxes. O...
by House Blend
Tue Jan 02, 2018 12:56 pm
Forum: Investing - Help with Personal Investments
Topic: 403B or brokerage contributions with different ERs (Vanguard vs. TIAA)
Replies: 1
Views: 219

Re: 403B or brokerage contributions with different ERs (Vanguard vs. TIAA)

1. As soon as you leave this employer (which could happen much sooner than retirement), you'll have the chance to roll your TIAA money to an IRA with low expenses. 2. If your marginal tax rate in retirement turns out to be lower than it is now, passing up the opportunity to defer income will cost yo...
by House Blend
Tue Jan 02, 2018 11:38 am
Forum: Personal Finance (Not Investing)
Topic: RMD timing from inherited IRA
Replies: 17
Views: 1601

Re: RMD timing from inherited IRA

If you are using the RMD to contribute more to your own retirement accounts, it's better to take it early. This does not save on taxes, but it reduces future RMDs; you take money out of the inherited Roth IRA, and put more in your personal Roth IRA, which does not have RMDs during your lifetime. Or...
by House Blend
Mon Jan 01, 2018 1:37 pm
Forum: Investing - Help with Personal Investments
Topic: Saving for 2019 Roth IRA
Replies: 5
Views: 478

Re: Saving for 2019 Roth IRA

Right now, that $460/month is not part of my asset allocation, but I guess in the back of my head I imagine it as a third-tier emergency fund. In other words, how are others saving for the next year's (2019's) Roth IRA? Your taxable account could be your 3rd tier emergency fund. Like you, I invest ...
by House Blend
Mon Jan 01, 2018 11:45 am
Forum: Personal Finance (Not Investing)
Topic: Did you get an Unexpected Year End Bonus because of the Tax Cut?
Replies: 44
Views: 3300

Re: Did you get an Unexpected Year End Bonus because of the Tax Cut?

Mom got a 2017 bonus due to retroactive lowering of the floor on Sched A medical deductions from 10% AGI to 7.5%. My back of the envelope calculation is that it saved her about $400 in Federal taxes.
by House Blend
Mon Jan 01, 2018 11:30 am
Forum: Personal Finance (Not Investing)
Topic: Ira to Roth-44000-4.5% tax
Replies: 9
Views: 1054

Re: Ira to Roth-44000-4.5% tax

I'm 65 this year. I was looking at putting 25000-Which would be 0 tax then 19000-10% tax from my Ira to Roth. That's about 4.5% tax. The rest of my income will be taxed at 12% to just a little at 22%. It just seems like a no brainer. I will live off of 100000 this year this includes my move to Roth...
by House Blend
Fri Dec 29, 2017 1:32 pm
Forum: Investing - Help with Personal Investments
Topic: Roll Money into Roth IRA?
Replies: 7
Views: 742

Re: Roll Money into Roth IRA?

If current income is say 50,000 and you roll over a retirement account say 40,000 into Roth IRA, would the tax hit on this roll over be based on your annual income (50000) or now rolled over amount will count in your income ( ie you will get in tax bracket for 90000) The Federal tax cost of a $40,0...
by House Blend
Fri Dec 29, 2017 12:06 pm
Forum: Investing - Help with Personal Investments
Topic: Roll Money into Roth IRA?
Replies: 7
Views: 742

Re: Roll Money into Roth IRA?

Here's a separate question - can we use funds from the 457 itself to cover the tax bill? Yes, if your former employer is willing to cooperate. And unlike 401(k) plans, there will be no 10% penalty if you do. That's because 457(b) plans enjoy penalty-free distributions at any age, once you leave the...
by House Blend
Fri Dec 29, 2017 11:33 am
Forum: Investing - Help with Personal Investments
Topic: Sell some taxable to contribute to traditional IRA?
Replies: 8
Views: 623

Re: Sell some taxable to contribute to traditional IRA?

It's possible thhat the OP is talking about a trad IRA contribution that would not be deductible. Especially if s/he is not eligible for Roth IRA contributions. I would not sell shares in taxable to fund a non-deductible IRA contribution unless it was part of a plan to convert to a Roth IRA shortly ...
by House Blend
Wed Dec 27, 2017 1:47 pm
Forum: Investing - Help with Personal Investments
Topic: Income changing - retirement/Roth IRA contribution question
Replies: 5
Views: 378

Re: Income changing - retirement/Roth IRA contribution question

For that, you would contact your IRA custodian, tell them that you need to remove an "Excess Contribution" (due to ineligiblity). They will calculate the earnings attributable to that contribution, and remove both. Another option: You contribute $5500 in 2018 when you are eligible to contribute $0. ...
by House Blend
Wed Dec 27, 2017 1:03 pm
Forum: Investing - Help with Personal Investments
Topic: Income changing - retirement/Roth IRA contribution question
Replies: 5
Views: 378

Re: Income changing - retirement/Roth IRA contribution question

If I had not realized this prior to starting fellowship, can you convert a Roth IRA to a taxable account mid-year even though you have contributed to Roth? "Converting a Roth IRA to a taxable account" doesn't make a lot of sense. Maybe what you are asking is whether (assuming you have qualifying in...
by House Blend
Wed Dec 27, 2017 11:38 am
Forum: Investing - Help with Personal Investments
Topic: Income changing - retirement/Roth IRA contribution question
Replies: 5
Views: 378

Re: Income changing - retirement/Roth IRA contribution question

If you're single and 100% of your income is from a fellowship, yes, taxable is the only option. What's so horrible about that? If self-employment on the side is consistent with the terms of your Fellowship, such income would qualify for IRA contributions. Or you could get married to a bread-winner a...
by House Blend
Mon Dec 18, 2017 10:56 am
Forum: Investing - Help with Personal Investments
Topic: Harvest tax gains? Convert to Roth?
Replies: 5
Views: 496

Re: Harvest tax gains? Convert to Roth?

Using 0% bracket space for a Roth conversion is a no-brainer. Better than harvesting capital gains. And keep in mind that harvesting capital gains is a waste of effort if you stay permanently in a bracket with 0% rates on LTCG. Beyond that, you need some estimates of what tax rates you will experien...
by House Blend
Sun Dec 17, 2017 4:59 pm
Forum: Personal Finance (Not Investing)
Topic: Donor Advised Fund if your tax circumstances will change in the future
Replies: 75
Views: 4995

Re: Donor Advised Fund if your tax circumstances will change in the future

Keep in mind that you can't claim more than 30% of AGI as a deduction when donating shares. So if you were planning to megabunch 10 years x 5% AGI at once, you can only take 30%. The remaining 20% carries forward to the next tax year. (The carryover clock expires after 5 years.) See Pub. 526 for det...
by House Blend
Fri Dec 15, 2017 4:16 pm
Forum: Investing - Help with Personal Investments
Topic: Need tutorial on interpreting Vanguard year-end estimates
Replies: 5
Views: 501

Re: Need tutorial on interpreting Vanguard year-end estimates

I'll try to be specific. I have shares in VWIAX - let's call it 100 shares. The QDI is 39%, as this is part bonds and part stocks. The QDI percentage is relevant only for estimating how much Federal tax you will owe. For estimating how much space you have in a tax bracket, it is irrelevant.[*] The ...
by House Blend
Fri Dec 15, 2017 12:26 pm
Forum: Investing - Help with Personal Investments
Topic: Need tutorial on interpreting Vanguard year-end estimates
Replies: 5
Views: 501

Re: Need tutorial on interpreting Vanguard year-end estimates

I'm not so sure that their 4th quarter estimates are particularly accurate. For example for VTSAX, their estimate for Q4 is $0.30 per share; I'm predicting something like $0.35 per share. We'll find out whose estimate is more accurate in about one week. ;-) Also, due to withholding for foreign taxes...
by House Blend
Fri Dec 15, 2017 11:21 am
Forum: Personal Finance (Not Investing)
Topic: Social Security 2018 Wage Base has been revised
Replies: 4
Views: 1068

Re: Social Security 2018 Wage Base has been revised

Awesome. (Never heard of revisions like that before.)

Not only does it save me $19, due to the complicated rules of my employer's DC plan, it means that I get to tax-defer an extra $15 in 2018.
by House Blend
Thu Dec 07, 2017 5:47 pm
Forum: Personal Finance (Not Investing)
Topic: At what age your investments start making more money than you?
Replies: 107
Views: 7697

Re: At what age your investments start making more money than you?

Yea not asking for when it averages more. Just wondering the first time it happened and if it ever was an exciting event. I realize average growth and actual spending levels matter much more. I just am wondering how often it happens and when it happens for people. In my experience, this has a lot m...
by House Blend
Mon Dec 04, 2017 5:28 pm
Forum: Personal Finance (Not Investing)
Topic: How do QCDs relate to RMDs?
Replies: 22
Views: 1390

Re: How do QCDs relate to RMDs?

...and if you live in a state with income tax and cannot itemize charitable donations at the state level, a QCD effectively makes your donation state-deductible.
by House Blend
Thu Nov 30, 2017 9:42 pm
Forum: Investing - Help with Personal Investments
Topic: What is the difference between VITPX and VSMPX?
Replies: 8
Views: 935

Re: What is the difference between VITPX and VSMPX?

One significant difference is that VSMPX is a share class of Total Stock Market alongside the more familiar Investor/Admiral/ETF share classes. So it benefits from the tax-efficiency of VTI, and is unlikely to ever distribute capital gains. VITPX and VITNX (the non-Plus-ed) are two share classes of ...
by House Blend
Tue Nov 28, 2017 2:26 pm
Forum: Investing - Help with Personal Investments
Topic: Divs and Cap Gains are killing me
Replies: 96
Views: 7976

Re: Divs and Cap Gains are killing me

Owning dividend stocks never made sense.:) The story sounds great byt when you run the math, you don't do any better. Actually, owning dividend stocks and funds made perfect sense, up until 10-15 years ago. Many folks don't realize (or they forget) how big of a hit brokers fees used to be. I rememb...
by House Blend
Wed Nov 22, 2017 9:21 am
Forum: Investing - Theory, News & General
Topic: Minimizing capital gains assuming FIFO basis
Replies: 26
Views: 2120

Re: Minimizing capital gains assuming FIFO basis

No need to use different funds, just different brokerage accounts. Example: own shares of Fund X at Brokerages A and B. If you want to sell the 1000 highest cost shares of X at A, do an in-kind (FIFO) transfer of the 2345 older shares at A over to B. Then FIFO sell those 1000 shares at A. Might even...
by House Blend
Fri Nov 10, 2017 10:00 pm
Forum: Investing - Theory, News & General
Topic: Initial Vanguard capital gains distribution announcement
Replies: 14
Views: 1833

Re: Initial Vanguard capital gains distribution announcement

I wonder why the Institutional and Institutional Plus Total Market Index funds are throwing off CG distributions, and the Admiral and Investor share classes are not. When it comes to mutual funds versus ETFs, there really shouldn't be any differences in CG distributions if they're the same (VTSAX v...
by House Blend
Fri Nov 10, 2017 9:36 am
Forum: Investing - Theory, News & General
Topic: How much does diligent rebalancing add to a portfolio?
Replies: 35
Views: 2590

Re: How much does diligent rebalancing add to a portfolio?

You have that backwards. If each new investment is 50:50, no rebalancing, then after 40 years, you should expect to have a larger portfolio than the diligent rebalancer. Rebalancing is not about improving returns, it's about risk control. If you want to improve returns, increase your allocation to r...
by House Blend
Fri Nov 03, 2017 10:38 am
Forum: Investing - Help with Personal Investments
Topic: CREF VarAnty funds vs TIAA Access TIAA-CREF Mutual Funds
Replies: 12
Views: 930

Re: CREF VarAnty funds vs TIAA Access TIAA-CREF Mutual Funds

The OP would be well advised to minimize the use of CREF Stock as long as they can access significantly cheaper index funds elsewhere, such as in an IRA. 1. They won't need to annuitize anything for 40+ years. If they need to annuitize in year 2057, they can transfer dollars into CREF Stock at that ...
by House Blend
Fri Nov 03, 2017 10:21 am
Forum: Investing - Help with Personal Investments
Topic: Help with estimating income taxes I will owe in 2017
Replies: 10
Views: 1174

Re: Help with estimating income taxes I will owe in 2017

Gross Income: $186,974.00 That one raises a red flag for me. "Gross income" is ambiguous at best. What you should be aiming for is what will appear in Box 1 of your Form(s) W-2 (plus any other taxable income not connected to your W-2 jobs). If your employer(s) offer decent quality paystubs, there m...
by House Blend
Thu Nov 02, 2017 5:00 pm
Forum: Personal Finance (Not Investing)
Topic: File 1040 on January 1st to thwart identity thieves?
Replies: 14
Views: 1455

Re: File 1040 on January 1st to thwart identity thieves?

Just make sure you owe money every year. No ID thief will turn in that type of tax return. The IRS will know that yours is the true one and you will have no further hassles. I'm not sure if you're joking. The criminal files a form which indicates large withholding, or large estimated payments, then...
by House Blend
Thu Nov 02, 2017 9:29 am
Forum: Investing - Help with Personal Investments
Topic: Spec ID at VG - BH wiki out of date? [Need help with cost basis]
Replies: 6
Views: 567

Re: Spec ID at VG - BH wiki out of date? [Need help with cost basis]

If you've elected SpecID at Vanguard, that applies only to your sales of covered shares. Regardless of what you've elected for covered shares, Vanguard will provide you with average basis info for your sales of your non-covered shares. If you're ok with that, then you're set. Since you can't buy new...
by House Blend
Wed Nov 01, 2017 9:16 pm
Forum: Investing - Help with Personal Investments
Topic: Spec ID at VG - BH wiki out of date? [Need help with cost basis]
Replies: 6
Views: 567

Re: Spec ID at VG - BH wiki out of date? [Need help with cost basis]

Perhaps the article could have been clearer, but only the first sentence in the " At Vanguard " section is about selling covered shares--i.e., shares acquired in 2012 or later. The rest of it is about how to identify specific non-covered shares to sell at Vanguard, since you can't do that yourself o...
by House Blend
Tue Oct 31, 2017 10:00 am
Forum: Investing - Help with Personal Investments
Topic: Best to harvest Dividends to meet living expenses
Replies: 23
Views: 2347

Re: Best to harvest Dividends to meet living expenses

What kind of dividends are you getting monthly? Most bond funds pay dividends monthly. errr, ummm... pay interest monthly... The monthly income generated by bond funds (munis and corporate) is described as dividends on the annual 1099 forms. Getting side tracked... but... yeah.... I see what you me...
by House Blend
Fri Oct 27, 2017 3:07 pm
Forum: Personal Finance (Not Investing)
Topic: RMD amount for IRA vs 403b (IRS instructions?)
Replies: 12
Views: 698

Re: RMD amount for IRA vs 403b (IRS instructions?)

(We already know that whereas the total IRA RMD amount for more than one IRA may be taken from just one IRA, for 403b's, one must take the appropriate RMD from each separate account. However, that's not relevant at this point, because there is only one account involved this year - one person, one 4...
by House Blend
Thu Oct 26, 2017 10:02 am
Forum: Investing - Theory, News & General
Topic: TIAA traditional -- How did they do that and What's the catch?
Replies: 31
Views: 2812

Re: TIAA traditional -- How did they do that and What's the catch?

I see, you are right, it did dip briefly. I must have a short memory. The second page of the fact sheet has a breakdown: https://www.tiaa.org/public/pdf/ffs/878094101-RA.pdf Just an FYI for those reading along, that page you linked is showing the *current* interest rates on old vintages. Which is n...
by House Blend
Thu Oct 26, 2017 9:42 am
Forum: Investing - Help with Personal Investments
Topic: How to generally tell how much your mutual fund investments grew in value excluding direct contribution?
Replies: 8
Views: 1086

Re: How to generally tell how much your mutual fund investments grew in value excluding direct contribution?

I've been trying to figure this out on the major providers schwab,fidelity, vanguard. If I contributed $2000 per month at the end of the year I contributed $24000. Maybe I bought and sold shares etc. and the market value increased and the current value is $30000. I want to see how to tell that the ...
by House Blend
Wed Oct 25, 2017 8:46 am
Forum: Investing - Theory, News & General
Topic: TIAA traditional -- How did they do that and What's the catch?
Replies: 31
Views: 2812

Re: TIAA traditional -- How did they do that and What's the catch?

And why is restricted Trad paying 4.0% instead of its minimum 3.0%? It's because business is good nowadays, I suspect... Traditional has always paid 1% or so above the minimum rate, at least as long as I have had it. I don't think that's a sign of anything. You must have started < 5 years ago. Circ...