Search found 4235 matches

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: 7053

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: 1239

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: 871

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: 7513

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: 1960

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: 1751

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: 2398

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: 813

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: 1088

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: 1385

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: 523

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: 523

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: 2187

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: 638

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: 2621

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: 1012

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: 2621

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...
by House Blend
Fri Oct 20, 2017 10:32 am
Forum: Investing - Help with Personal Investments
Topic: TIAA Questions
Replies: 13
Views: 1048

Re: TIAA Questions

Your "TIAA Access Equity Index Fund T1" is not a mutual fund, it's a variable annuity. So, similar to CREF Equity Index except with a lower ER. No, it has no ticker. If you like total markets better, use that instead of the 500 index variable annuity. The Russell 3000 is a perfectly reasonable total...
by House Blend
Wed Oct 18, 2017 9:10 pm
Forum: Personal Finance (Not Investing)
Topic: TIAA Annuity SRA vs. Total Bond Market - Help!
Replies: 5
Views: 573

Re: TIAA Annuity SRA vs. Total Bond Market - Help!

BigoteGato, Echoing ofckrupke, one thing you definitely do not want to do is to transfer money from the Vanguard IRA to a TIAA IRA. This is the path of least resistance, but the flavor of Traditional offered in a TIAA IRA is currently paying only 2.1% on new contributions. The only way you can get t...
by House Blend
Mon Oct 16, 2017 9:06 pm
Forum: Investing - Help with Personal Investments
Topic: Sell fund cost basis
Replies: 10
Views: 831

Re: Sell fund cost basis

To answer the question, if you sell all shares, then the basis is the same for Average Basis and Specific ID as long as one never sold shares previously as Average Cost. However the tax consequences are not the same. If you sell all shares, with 90% of the shares being long term and 10% short term,...
by House Blend
Mon Oct 16, 2017 1:13 pm
Forum: Investing - Theory, News & General
Topic: Encryption flawed in some Yubikey models
Replies: 6
Views: 891

Re: Encryption flawed in some Yubikey models

The more general story here is that a closed source library for RSA key generation (and in particular, for generating large primes) has been found to be flawed. Apparently this library is most commonly used on low power devices such as smart cards. More here: https://arstechnica.com/information-tech...
by House Blend
Mon Oct 16, 2017 11:01 am
Forum: Investing - Help with Personal Investments
Topic: Roth Convert: To the max of your likely future bracket or the one just below?
Replies: 5
Views: 796

Re: Roth Convert: To the max of your likely future bracket or the one just below?

If you are a typical oversaving Boglehead and expect to leave behind a large estate... 1. You should be including your beneficiaries future tax rates in the calculation. 2. Don't Roth convert dollars that would otherwise be directed to charity. In other words, why do that last $100K of Roth conversi...
by House Blend
Mon Oct 16, 2017 10:04 am
Forum: Personal Consumer Issues
Topic: WPA2 protocol used by vast majority of wifi connections has been broken
Replies: 112
Views: 11193

Re: WPA2 protocol used by vast majority of wifi connections has been broken

According to the KRACK site, it is the client devices that are the most vulnerable, not wifi routers: Our main attack is against the 4-way handshake, and does not exploit access points, but instead targets clients. So it might be that your router does not require security updates. We strongly advise...
by House Blend
Mon Oct 16, 2017 9:22 am
Forum: Investing - Theory, News & General
Topic: Rebalancing - Personal Philosophies
Replies: 43
Views: 3867

Re: Rebalancing - Personal Philosophies

I rebalanced all through the 1990’s and during the first decade of the 2000’s. But now my stock allocation is about five percentage points above my target, and I’ve decided not to rebalance. The reason: all of my stocks are in taxable accounts, and rebalancing by selling shares would trigger signif...
by House Blend
Sun Oct 15, 2017 7:59 am
Forum: Investing - Theory, News & General
Topic: When everything goes up, what goes down & vice versa
Replies: 28
Views: 3284

Re: When everything goes up, what goes down & vice versa

Up vs. down in the absolute sense is not what correlation is about. Rather, correlation is measured relative to averages. If the expected returns of A and B are 8% and 4%, then a data point with actual returns of 10% and 2% will make a negative contribution to the sample correlation. Even with a per...
by House Blend
Fri Oct 13, 2017 10:19 am
Forum: Personal Finance (Not Investing)
Topic: Itemized Tax Deductions
Replies: 10
Views: 689

Re: Itemized Tax Deductions

Anyone with deductions roughly similar to the standard deduction should be looking at bunching strategies. For example, do all of your charitable donations in odd numbered years. Or mega-bunch your donations by setting up a donor advised fund. See if you can bunch up your property tax payments, etc.
by House Blend
Thu Oct 12, 2017 8:20 pm
Forum: Personal Consumer Issues
Topic: What Movie Have You Recently Watched?
Replies: 3120
Views: 916299

Re: What Movie Have You Recently Watched?

Saw this recently on Netflix: In order of disappearance . (Original title: Kraftidioten ). An aging snowplow driver seeking revenge for the death of his drug addicted son ends up triggering a war between competing drug gangs. It feels like the makers of this Norwegian movie were aiming for a sort of...
by House Blend
Wed Oct 11, 2017 9:33 am
Forum: Personal Finance (Not Investing)
Topic: Tax issue: Made a mistake on Inherited IRA RMDs for five years
Replies: 38
Views: 3018

Re: Tax issue: Made a mistake on Inherited IRA RMDs for five years

I would go ahead and file Forms 5329 for the years in question. You can do this stand-alone, without a 1040-X. I think only 3-4 lines on that form are relevant, so it is unlikely to take much time. There's an option to beg for mercy and not be penalized. If you go that route, I think you should take...
by House Blend
Mon Oct 09, 2017 10:07 am
Forum: Personal Finance (Not Investing)
Topic: PostDoc Grant - No W/H, Didn't Pay Estimated Taxes
Replies: 23
Views: 2103

Re: PostDoc Grant - No W/H, Didn't Pay Estimated Taxes

If that $9600, plus what was withheld by her employer prior to changing to the grant, plus what my tax withholding for the year is already shaping up to be, don't come out to 110% of last years taxes I may go up even more. (or 100%? What's the rule for 2017 for >150K household?) That's not the only...
by House Blend
Mon Oct 02, 2017 10:27 am
Forum: Investing - Help with Personal Investments
Topic: Annuity Maturing for 90 year old mother
Replies: 15
Views: 1630

Re: Annuity Maturing for 90 year old mother

It is not in a IRA, but is in a 403B TDA. They sent us a notice that offered a Fixed Income Plan or cash value of $195K. Buried in the paperwork was a fine print document that said that "all or a portion of the payment is eligible to be rolled over into an IRA. They did not provide the documents to...
by House Blend
Tue Sep 26, 2017 10:41 am
Forum: Personal Finance (Not Investing)
Topic: Withdraw Roth principal and later redeposit as tIRA?
Replies: 19
Views: 1817

Re: Withdraw Roth principal and later redeposit as tIRA?

With Option A though and to use your example, the remaining $2,750 (+ gains) left in the Roth after half is recharacterized to the tIRA ... I can withdraw that $2,750 principal, correct? And leave in the gains? I don't see why not considering in this scenario I didn't "undo" anything and simply jus...
by House Blend
Tue Sep 26, 2017 10:22 am
Forum: Personal Finance (Not Investing)
Topic: Withdraw Roth principal and later redeposit as tIRA?
Replies: 19
Views: 1817

Re: Withdraw Roth principal and later redeposit as tIRA?

A -- wait until 2018 when I know the deductible tIRA amount, then recharacterize that amount to the tIRA and withdraw the remaining Roth contribution balance leaving in the Roth earnings to avoid tax/penalty Or B -- withdraw the $5.5K now, leave the earnings in , and then only redeposit the deducti...
by House Blend
Mon Sep 25, 2017 4:32 pm
Forum: Investing - Theory, News & General
Topic: Which Taxable Lots to Sell during Retirememt?
Replies: 10
Views: 1798

Re: Which Taxable Lots to Sell during Retirememt?

You capture part of my dilemma: harvest gains or Roth Conversion (although you may see in my response to livesoft that this year I am thinking that it is best for me to minimize tax from taxable account sales to reduce my housing debt and thus reduce 'excessive' risk. Imagine a taxable portfolio co...
by House Blend
Thu Sep 21, 2017 4:16 pm
Forum: Personal Finance (Not Investing)
Topic: IRA Roth recharacterization then backdoor
Replies: 5
Views: 447

Re: IRA Roth recharacterization then backdoor

This is where I get a little confused. Can i convert both my 2016 and 2017 contributions via a backdoor Roth and include them both in my 8606 2017 return. There are no tax implications for doing that? Sorry, I don't understand what you are confused about. As far as the IRS is concerned, there is no...
by House Blend
Wed Sep 20, 2017 9:06 pm
Forum: Personal Finance (Not Investing)
Topic: IRA Roth recharacterization then backdoor
Replies: 5
Views: 447

Re: IRA Roth recharacterization then backdoor

Can I now do a back-door Roth on the 2016 contribution, and on an additional contribution for 2017? Is there a way to report both of these on my 2017 return later? Yes, you can do this. You may not want to if you have any traditional IRA accounts that contain substantial pre-tax money. If 80% of al...
by House Blend
Wed Sep 20, 2017 8:48 pm
Forum: Personal Finance (Not Investing)
Topic: "Filed pursuant to section 301.9100-2" on original return
Replies: 1
Views: 353

Re: "Filed pursuant to section 301.9100-2" on original return

If one files and receives an extension by April 15, and, after April 15 but before October 15, performs a recharacterization and files their original return reflecting the recharacterization, is the "Filed pursuant to section 301.9100-2" comment necessary? My amateur opinion is that you wouldn't ad...
by House Blend
Mon Sep 18, 2017 2:43 pm
Forum: Investing - Help with Personal Investments
Topic: Is this TIAA TRAD 3% or 2.5%?
Replies: 17
Views: 1218

Re: Is this TIAA TRAD 3% or 2.5%?

FYI, the 2.5% minimum applies to lifetime income options, not just transfer payout annuities. (Some contracts, such as RC and RC plus have lower minimums.) Many TIAA participants seem to be confused about what this means. It is analogous to the interest rate on a mortgage, in reverse. Indeed, when y...
by House Blend
Tue Sep 12, 2017 9:19 pm
Forum: Personal Finance (Not Investing)
Topic: Estimated Taxes on IRA Withdrawals and Roth Conversions
Replies: 2
Views: 653

Re: Estimated Taxes on IRA Withdrawals and Roth Conversions

If I do a Roth Conversion on December 1st, can I pay the 25% estimated tax for all the conversion at January 15th without incurring federal tax payment penalties? I also try to estimate and do the same for state taxes. Is my estimated tax payment strategy sound? My understanding is that tax is due ...
by House Blend
Sun Sep 10, 2017 8:26 pm
Forum: Personal Consumer Issues
Topic: What Movie Have You Recently Watched?
Replies: 3120
Views: 916299

Re: What Movie Have You Recently Watched?

Toni Erdmann (Germany 2016) A practical joking father invades his corporate daughter's life. Very funny. The New York Times review said the director was inspired by the Andy Kaufman / Tony Clifton combination. I recommend it. I found it close to unbearable, and gave up after about 90 minutes. I cou...
by House Blend
Tue Sep 05, 2017 8:36 am
Forum: Investing - Theory, News & General
Topic: Do retiree BHs actually run down their portfolios?
Replies: 73
Views: 8657

Re: Do retiree BHs actually run down their portfolios?

If you plan for the worst case (or even the 25th percentile), on average you should expect to have a lot of money left over.

Whether that is tragic or not is in the eye of the beholder.
by House Blend
Mon Sep 04, 2017 9:33 pm
Forum: Investing - Help with Personal Investments
Topic: Help with TIAA-CREF
Replies: 15
Views: 1777

Re: Help with TIAA-CREF

Regarding your questions... 2. Although many TIAA plans offer mutual funds from TIAA and other providers, the CREF accounts and TIAA Traditional and TIAA Real Estate are NOT mutual funds. However, the CREF accounts do behave like mutual funds, with minimal restrictions on trades, transfers, rollover...
by House Blend
Mon Sep 04, 2017 4:39 pm
Forum: Personal Finance (Not Investing)
Topic: Jason Zweig's tax bomb example
Replies: 28
Views: 3871

Re: Jason Zweig's tax bomb example

^A cap gain distribution always lowers the share price, regardless of what types of assets the fund invests in. For dividend distributions, AFAIK all bond ETFs behave like stock ETFs--the price also drops. But the distributions tend to be more frequent (monthly is common), so the tax consequences ar...
by House Blend
Mon Sep 04, 2017 1:16 pm
Forum: Personal Finance (Not Investing)
Topic: Jason Zweig's tax bomb example
Replies: 28
Views: 3871

Re: Jason Zweig's tax bomb example

For 2) if OP has no other CGs (unlikely if owns 1 actively managed fund, likely owns more), then capital loss (<3K) will be used against other income so indirectly against the ST Cap gain? Yes, it could work out favorably that way. Not as favorably if the loss harvested is smaller than the total di...
by House Blend
Mon Sep 04, 2017 12:21 pm
Forum: Personal Finance (Not Investing)
Topic: Jason Zweig's tax bomb example
Replies: 28
Views: 3871

Re: Jason Zweig's tax bomb example

For 2) if OP has no other CGs (unlikely if owns 1 actively managed fund, likely owns more), then capital loss (<3K) will be used against other income so indirectly against the ST Cap gain? Yes, it could work out favorably that way. Not as favorably if the loss harvested is smaller than the total di...
by House Blend
Mon Sep 04, 2017 10:54 am
Forum: Personal Finance (Not Investing)
Topic: Jason Zweig's tax bomb example
Replies: 28
Views: 3871

Re: Jason Zweig's tax bomb example

But isn't it true that the mistake can be corrected? Now that the share price is lowered accordingly, one can sell the shares to claim the capital loss against the capital gain. good idea. It may be a good idea, having learned the lesson not to buy actively managed, high turnover funds in taxable, ...
by House Blend
Wed Aug 30, 2017 11:21 am
Forum: Investing - Help with Personal Investments
Topic: Bond Fund - buying the interest?
Replies: 7
Views: 885

Re: Bond Fund - buying the interest?

In a retirement account? A non-issue. For a muni bond fund? A non-issue. For a taxable bond fund in a taxable account? Depends on the fund, but unless it is December and you are expecting a large capital gain distribution, it is still most likely a non-issue. Most bond mutual funds do not bake accru...
by House Blend
Mon Aug 28, 2017 2:44 pm
Forum: Investing - Help with Personal Investments
Topic: Do people in the 15% tax bracket tax loss harvest?
Replies: 24
Views: 2324

Re: Do people in the 15% tax bracket tax loss harvest?

I personally would tax gain harvest in that bracket. I'd be thinking along the same lines. Don't get why most folks here have talked about TLH instead of TGH. https://www.bogleheads.org/wiki/Tax_gain_harvesting If you windup in same tax bracket in retirement, you've benefited from tax deferment. A ...
by House Blend
Mon Aug 28, 2017 11:37 am
Forum: Investing - Help with Personal Investments
Topic: approaching 70, and a totally new situation.
Replies: 31
Views: 4401

Re: approaching 70, and a totally new situation.

Also, advice on most tax efficient way to manage my new situation. I can change funds easily as I have almost no capital gains to avoid if I sell my taxable holdings. 1. Perhaps the gain harvesting horse has been beaten to death, but in case it hasn't, Roth converting up to the top of the 15% brack...
by House Blend
Sun Aug 27, 2017 8:27 pm
Forum: Personal Finance (Not Investing)
Topic: Cost basis question
Replies: 4
Views: 576

Re: Cost basis question

Once you use one of the two methods when selling a fund, than IRS requires you continue to use that method. So it depends on history. No. You can use SpecID or FIFO and then switch to Average Basis. If you sell covered shares using average basis, the remaining covered shares (if any) must continue ...
by House Blend
Fri Aug 25, 2017 10:59 am
Forum: Investing - Help with Personal Investments
Topic: 401K roller to IRA. Need to consider Roth?
Replies: 11
Views: 1119

Re: 401K roller to IRA. Need to consider Roth?

Given that you are forced to roll the accounts to some flavor of IRA, trad IRA is the safe default. It doesn't stop you from doing Roth conversions. It does prevent a backdoor Roth, but perhaps you should not care. It's true that doing a rollover of $530K directly from 401(k)s to his and hers Roth I...