Search found 201 matches

by FriedOkra
Thu Jan 23, 2025 12:42 pm
Forum: Personal Investments
Topic: Distributions from SCHP When Held at Vanguard
Replies: 3
Views: 533

Distributions from SCHP When Held at Vanguard

I purchased some Schwab US TIPS ETF (SCHP) today through my Vanguard (VG) taxable LMP/SS bridge account. The ETF literature at Schwab describes monthly distributions for SCHP, but Vanguard's info page for SCHP doesn't list these, and the columns for dividend and capital gains instructions at VG both list "N/A" on election choices for SCHP. So...what happens to the monthly distributions when SCHP is held at VG?

ETA: As a follow-up, I am wondering if these election options aren't showing yet because the trade hasn't settled yet, even though the ETF is listed in the elections list.

[Please do not debate holding this ETF in a taxable account; I have good reasons discussed in other posts.]
by FriedOkra
Sun Jan 12, 2025 4:28 pm
Forum: Investing - Theory, News & General
Topic: HSA contribution increases for 2025
Replies: 11
Views: 2742

Re: HSA contribution increases for 2025

Thank you, Terran and kd2008, for your replies!
by FriedOkra
Sun Jan 12, 2025 8:34 am
Forum: Investing - Theory, News & General
Topic: HSA contribution increases for 2025
Replies: 11
Views: 2742

Re: HSA contribution increases for 2025

Seeking a clarification on this:

DW (who is not yet 55) maintains our family HDHP coverage and contributes her own individual limit (in this case, $4300 for 2025) to her HSA through work. I am over 55 and separately have my own HSA, to which I typically contribute the individual limit plus the $1,000 post-55 catch-up.

Since the family HSA limit is $8,550 for 2025, does this mean that DW and I combined can only contribute $8,550 plus my $1,000 catch-up, even though we maintain separate HSAs? In other words, one of us needs to contribute $50 less than our respective individual eligibilities?
by FriedOkra
Thu Jan 09, 2025 6:03 pm
Forum: Personal Investments
Topic: Class Action Settlement Check Made Out to Old Brokerage
Replies: 3
Views: 449

Re: Class Action Settlement Check Made Out to Old Brokerage

Thank you. I sometimes struggle with the money value of time, not to mention the “cost” of the stress of those calls.
Having a check in hand that I can’t actually deposit only broadens that blind spot.

I am currently reading Your Money or Your Life, which is helping me see this balance more clearly.
by FriedOkra
Thu Jan 09, 2025 11:48 am
Forum: Personal Investments
Topic: Class Action Settlement Check Made Out to Old Brokerage
Replies: 3
Views: 449

Class Action Settlement Check Made Out to Old Brokerage

I recently received at my home address a small check (about $15) from a class action settlement for a stock my father had owned in his IRA. I inherited half of this IRA (and the stock in question) when my father died a few years ago. The check is made out to "[Old Brokerage] FPO [Dad's Name IRA] FBO [Old Brokerage] FPO [Dad's Name IRA] FBO."

After my father passed, I learned that the old brokerage had been doing substantial churning and had my father invested in several hundred individual stocks (often one or two shares apiece) as well as several mutual funds with high fees. The annual cost (AUM fee plus investment fees) was close to 3%. Infuriated, I had Vanguard pull all of it. Many of the stocks were OTCs, which meant part of the pull ...
by FriedOkra
Sun Jan 05, 2025 3:21 pm
Forum: Investing - Theory, News & General
Topic: Treasury Direct e-mail: undelivered gift bonds
Replies: 366
Views: 59797

Re: Treasury Direct e-mail: undelivered gift bonds

I should note that I have read David Enna's column from today (after making the preceding post): https://tipswatch.com/2025/01/05/great- ... -for-2025/.

It's interesting that those who delivered all of the gift boxes before 12/31/2024 are still able to direct purchase regular (non-gift box) I-bonds for 2025, but folks like us (who delivered gift box contents after 12/31/2024) MAY be locked out from doing so. I guess that's what I get for being a rule follower.
by FriedOkra
Sun Jan 05, 2025 2:58 pm
Forum: Investing - Theory, News & General
Topic: Treasury Direct e-mail: undelivered gift bonds
Replies: 366
Views: 59797

Re: Treasury Direct e-mail: undelivered gift bonds

I'm curious whether anyone has tested new purchases with the gift box strategy now that we are clear of the January 1 holiday. I, too, am waiting for April, when we will know more about what the fixed rate is likely to be, but it has certainly been crickets from TD since we were all told to deliver our gift box contents last fall. I delivered ours--one set of $10K each--on January 1, so our 2025 eligibility is presumably otherwise exhausted, per published regulations and TD website guidance.
by FriedOkra
Mon Dec 16, 2024 8:37 pm
Forum: Personal Investments
Topic: Strips, Tips, or Nominal Bonds? [Liquidating an Inherited IRA]; Also IRMAA Concerns
Replies: 5
Views: 443

Re: Strips, Tips, or Nominal Bonds? [Liquidating an Inherited IRA]; Also IRMAA Concerns

Thank you for the affirmation that the general plan is a good one for this situation. I also appreciate that the crystal ball remains cloudy, as always; I just wanted to be sure I wasn’t missing an obvious advantage of one bond type over another for this scenario.

Our annual income is below what the current IRMAA threshold is, but not by a lot, and with portfolio growth over the next six years (most of our nest egg is in taxable), I can see us dancing on the IRMAA cliff edge by that time.
by FriedOkra
Mon Dec 16, 2024 2:07 pm
Forum: Personal Investments
Topic: Strips, Tips, or Nominal Bonds? [Liquidating an Inherited IRA]; Also IRMAA Concerns
Replies: 5
Views: 443

Strips, Tips, or Nominal Bonds? [Liquidating an Inherited IRA]; Also IRMAA Concerns

This question is restricted specifically to the funds in an inherited IRA, which I treat as a separate bucket to pay down extra principal on our mortgage over time (payoff goal is early 2032, when I will be 65) and fund Roth and HSA contributions for DW and me (along with offsetting efforts to max out DW's 401k contribution).

I received the inherited IRA in early 2022 (deceased passed in late 2021, had already taken RMD for that year), so I know that I need to liquidate by the end of 2031.

When I started, I bought a 1-year, a 2-year, and a 3-year Treasury that were roughly 1/10th of the value of the inherited IRA, then invested the rest in a roughly 65/35 mix of VTSAX (VG Total Stock Index) and VBTLX (VG Total Bond Index). Then, each ...
by FriedOkra
Sat Nov 30, 2024 3:31 pm
Forum: Personal Investments
Topic: Take some money off the table?
Replies: 110
Views: 14969

Re: Take some money off the table?

I have a clear plan, and I stick to it. But part of that plan was to sell off a mid five figures legacy ETF in taxable from an inheritance (VTV) that doesn’t fit my long-term plan by sometime in 2025. Because of the run-up, I chose to do so last week, and instead of moving that money back into VTI in taxable, I decided to move it instead to my LMP to create a slightly bigger comfort zone there. Market timing? Maybe. But that feels like a good use of “money off the table” for our long-term plan and, in the big picture, is really a form of rebalancing.
by FriedOkra
Sun Nov 10, 2024 5:21 am
Forum: Personal Investments
Topic: Misplaced 1980s Purchase Records of 2 Funds in Taxable
Replies: 8
Views: 1165

Re: Misplaced 1980s Purchase Records of 2 Funds in Taxable

ETA: I am not a lawyer or tax advisor, and this is not law or tax advice, etc.

As a way to limit any further damage, I would turn off dividend reinvestment in the BIGRX if you have not already done so, so that you don’t end up with more of it.

Beyond that, I would just sell part of BIGRX up to the top of your current tax bracket each year. Based on what you described about the third fund, also valued at $25k but originally purchased at $2k, you probably have had a similar 12X increase in the two funds you mentioned, so how much tax savings are we really talking about even if you could find the documentation?

Just clean it up and be done. Only other option is to donate the BIGRX shares to a charity, which you would want to do all at ...
by FriedOkra
Thu Sep 26, 2024 8:47 pm
Forum: Personal Finance (Not Investing)
Topic: Per diem or receipts for business meal expenses
Replies: 26
Views: 3034

Re: Per diem or receipts for business meal expenses




I always use the standard daily allowances. Because I would never spend that much on food/hotels, it works out well for me.

For 20 years this is how I did it as well. Never heard a peep from the IRS about it.


I'm asking the following as someone who is thinking about moving from corporate consulting to an independent role. I want to follow the law, but also want to understand what is appropriate:

- In corporate life, receiving the IRS per diem was a non-taxable bonus if I could keep expenses low (e.g., free hotel breakfast)
- As an independent consultant, am I entitled to pay myself a non-taxable per diem which I can expense from the company?
- I assume the per diem would need to be in line with GSA schedules -- is there anything ...
by FriedOkra
Fri Sep 13, 2024 5:25 am
Forum: Personal Investments
Topic: Specific mechanics and timing of Vanguard $25 account fee
Replies: 15
Views: 2073

Re: Specific mechanics and timing of Vanguard $25 account fee

I’ve watched with interest and amusement over the past year as some BHs have melted down over Vanguard’s announcement about a $25 annual fee for mailed statements. My local bank charges $3 a month for these and has for years. As already pointed out, Vanguard was actually late to this game of cost recovery (paper, ink, postage).

The reality is that shifting to digital statements is actually better for you, the customer:

1) if you are already using 2FA and other security measures, a digital statement is FAR safer than your paper statement sitting in a physical mailbox where it can be stolen (or ending up misdelivered in somebody else’s physical mailbox);

2) if you really need to feel the paper in your hand, print it out at home. But this ...
by FriedOkra
Fri Sep 06, 2024 3:43 pm
Forum: Personal Finance (Not Investing)
Topic: Guilt about Semi-Retirement (Looking for Reading Resources)
Replies: 25
Views: 2794

Re: Guilt about Semi-Retirement (Looking for Reading Resources)

Thank you, all, for the encouragement, as well as Harmanic and others for the book recommendations.

A few things for additional context, without giving away too much identifying detail:

* In addition to my professional work (60-70 hours/wk), I volunteer about 15 to 20 hours a week already. I would like to continue doing this in semi-retirement/retirement, but will gradually wind down the volunteer leadership component of this, which is exhausting and often frustrating, and probably reduce the hours a bit (eventually to 10/wk). I am fortunate to have a wide range of interests; boredom is not a concern. Travel is in the future for DW and me, particularly after she cuts back in seven years or so.

* Part of the nature of my professional and ...
by FriedOkra
Fri Sep 06, 2024 11:03 am
Forum: Personal Finance (Not Investing)
Topic: Guilt about Semi-Retirement (Looking for Reading Resources)
Replies: 25
Views: 2794

Guilt about Semi-Retirement (Looking for Reading Resources)

I have been working as a consultant for more than 20 years now, but I have recently made the decision to semi-retire in December 2024. The client-based nature of much of what I do has become a drag in the past couple of years, highlighted by a string of challenging (and unrealistic) client expectations, as well as some health challenges (mechanical not systemic) that have made me less confident in my ability to do some of the more taxing fieldwork, which is often solitary and deep in remote areas. My work moving forward will focus on book projects in my field and not on client work except in very rare instances. I am 57, we are at about 30x, DW (48) wants to keep working FT for another seven years or so, and her job is secure; our med ...
by FriedOkra
Sat Aug 24, 2024 3:51 pm
Forum: Personal Investments
Topic: What to do when investing timeline is murky?
Replies: 15
Views: 2123

Re: What to do when investing timeline is murky?



Between some other current threads where people are excoriating others for having fixed income in Roth and this one where some seem critical of using buckets, it seems some folks could use a reminder that there is no “perfect,” one-size-fits-all way to manage one’s portfolio, and indeed, seeking perfection can often be the enemy of “good enough.” Everything does not have to be hyper-optimized.


<snip>

Again, due to lack of tone on Internet boards, my response to you here is meant in a collaborative spirit of discussion, so I hope you don't take away from this that I'm some know-it-all (I'm still learning like many here) or that I have a bad attitude (I am blunt, but I try not to be rude). In any event, I hope you have a wonderful day ...
by FriedOkra
Sat Aug 24, 2024 1:03 pm
Forum: Personal Investments
Topic: What to do when investing timeline is murky?
Replies: 15
Views: 2123

Re: What to do when investing timeline is murky?

There is nothing wrong with BOTH employing a bucket strategy and counting it as part of your overall AA.

We treat an Inherited IRA as a very conservative bucket (20/80) with 7 years to go, since our annual withdrawals are used for very specific purposes in the near term. But that Inherited IRA bucket is still part of an overall 65/35 AA. The OP can certainly take a similar approach.

Between some other current threads where people are excoriating others for having fixed income in Roth and this one where some seem critical of using buckets, it seems some folks could use a reminder that there is no “perfect,” one-size-fits-all way to manage one’s portfolio, and indeed, seeking perfection can often be the enemy of “good enough.” Everything ...
by FriedOkra
Wed Jul 17, 2024 8:56 pm
Forum: Personal Investments
Topic: For those of you in the financial industry, what does your personal portfolio look like?
Replies: 20
Views: 3931

Re: For those of you in the financial industry, what does your personal portfolio look like?







To be fair, that was over 10 years ago, and a unique situation. It is almost unheard of today for any 401k to have no index option. I'm in several 401k plans of financial employers, all of them offer some type of index.


My wife’s 401k plan through a major brokerage/annuity firm offers NO total market index fund options on either the equity or fixed income side.

Do they offer a 500 fund or other index?


No. The fixed income options are all terrible and expensive (none of them indexed). The best/cheapest equity options available are TILIX (Nuveen Large Cap Growth Index, 0.05 ER) and VSEQX (Vanguard Strategic Equity Fund, 0.17 ER). We get by with a blend of those two, and I shoulder her fixed income portion in my accounts ...
by FriedOkra
Wed Jul 17, 2024 1:04 pm
Forum: Personal Investments
Topic: For those of you in the financial industry, what does your personal portfolio look like?
Replies: 20
Views: 3931

Re: For those of you in the financial industry, what does your personal portfolio look like?






Many in the FIRE community stick to the S&P 500, while other investors focus on modal stocks
What do people who work in finance typically invest in?


They may or may not have access to S&P 500 index fund in the company's 401(k) plan.

Back when I worked for Capital Group (American Funds), our retirement plan was limited to the company's own mutual funds. There was no index fund or ETF option then.

It wasn't until 2014 with my current employer, that I finally had S&P 500 index in my 401(k) plan selection.

To be fair, that was over 10 years ago, and a unique situation. It is almost unheard of today for any 401k to have no index option. I'm in several 401k plans of financial employers, all of them offer some type of index.


My ...
by FriedOkra
Wed Jul 17, 2024 6:54 am
Forum: Personal Investments
Topic: For those of you in the financial industry, what does your personal portfolio look like?
Replies: 20
Views: 3931

Re: For those of you in the financial industry, what does your personal portfolio look like?




Many in the FIRE community stick to the S&P 500, while other investors focus on modal stocks
What do people who work in finance typically invest in?


They may or may not have access to S&P 500 index fund in the company's 401(k) plan.

Back when I worked for Capital Group (American Funds), our retirement plan was limited to the company's own mutual funds. There was no index fund or ETF option then.

It wasn't until 2014 with my current employer, that I finally had S&P 500 index in my 401(k) plan selection.

To be fair, that was over 10 years ago, and a unique situation. It is almost unheard of today for any 401k to have no index option. I'm in several 401k plans of financial employers, all of them offer some type of index.


My ...
by FriedOkra
Sun Jul 14, 2024 7:55 pm
Forum: Personal Investments
Topic: Gifting between spouses to get 100% stepup
Replies: 5
Views: 1292

Re: Gifting between spouses to get 100% stepup

BuzzyQ wrote: Sun Jul 14, 2024 2:20 pm Retired in common law state which only allows 50% step up of assets upon death of spouse. Have assets that have grown more than 10 fold in value.
Considering gifting assets to spouse who will likely die first to get 100% step up for surviving spouse.
Strategy outlined in article “Maxmizing Step Up Basis bf Gifting Assets Between Spouses” Feb 2, 2022 at kites.com. Addresses both pros and cons.
What do you think. Save thousands in taxes.
I am not a lawyer or tax accountant, but my understanding is that this 50% step up rule for common law states only applies to property that is JOINTLY held/titled. Assets held solely by you or solely by your spouse would get the full 100% step up. Is this correct?
by FriedOkra
Thu Jul 11, 2024 8:07 am
Forum: Personal Investments
Topic: How to invest in an account that must be zero in 10 yrs
Replies: 22
Views: 2983

Re: How to invest in an account that must be zero in 10 yrs

I inherited a non-spousal IRA in 2021. My approach has been to plan on withdrawing a bit over the fractional share for the given year (1/10th at the start, then 1/9th, 1/8th, etc. as the remaining time reduces), spread out in monthly installments, in order to spread out the tax hit over the ten years. We use the annual withdrawal to offset full funding of DW's and my Roth and HSA each year, plus send extra principal payments on our mortgage monthly.

I set things up to consist of three "chunks":
1) the current year's withdrawals in VUSXX (money market fund, currently 5.28%)
2) three-year, rolling Treasury ladder for the next three years of withdrawals (all around 4.5% YTM)
3) remainder invested in a 75/25 mix of stock/bond funds (VTSAX ...
by FriedOkra
Thu Jul 11, 2024 7:46 am
Forum: Personal Investments
Topic: Building the LMP--When and How, While Also Keeping It Simple [Liability Matching Portfolio]
Replies: 11
Views: 1705

Re: Building the LMP--When and How, While Also Keeping It Simple [Liability Matching Portfolio]

And the more I think about this further, it would seem to make sense to just buy STRIPS for at least the 2036-2045 need (hedged for inflation at 3%). If I do this:

1) I assume the maturing STRIPS would just dump into the settlement fund at Vanguard as each one matures, yes? To BirdFood's point, I think this would address DW's concerns about not wanting to have to "deal" with anything.
2) I know that I will get an OID each year for the deferred yield, which is taxed as interest, and from what I have read here, Vanguard will make these calculations on the 1099, so I just need to report it, yes?
3) Given that I expect us to move into a higher tax bracket as we get older (based on earnings on other investments and possible expiry of 2017 tax ...
by FriedOkra
Wed Jul 10, 2024 8:51 pm
Forum: Personal Investments
Topic: Building the LMP--When and How, While Also Keeping It Simple [Liability Matching Portfolio]
Replies: 11
Views: 1705

Re: Building the LMP--When and How, While Also Keeping It Simple [Liability Matching Portfolio]

Thank you for this additional feedback. I think my resistance to buying nominal Treasuries for as far out as 2045 (and farther, if so inclined) is psychological—a combination of FOMO (what if rates go higher?) and self-criticism if these bridges don’t play out to be as optimal as possible. I need to counter that with a reminder that the whole purpose of an LMP bucket is certainty, not best possible performance.
by FriedOkra
Tue Jul 09, 2024 12:14 pm
Forum: Personal Investments
Topic: Building the LMP--When and How, While Also Keeping It Simple [Liability Matching Portfolio]
Replies: 11
Views: 1705

Re: Building the LMP--When and How, While Also Keeping It Simple

goodenyou wrote: Tue Jul 09, 2024 9:49 am
Is your wife planning on waiting until she is 70 to claim Social Security? It appears so, since it will be in 22 years from now and she is currently 48. You will be 78 years old at that time.

Curious to know your SS claiming strategy.
OpenSocialSecurity.com identifies 69 for me and 70 for DW as the ideal ages. Her PIA is higher than mine.
by FriedOkra
Tue Jul 09, 2024 8:40 am
Forum: Personal Investments
Topic: Building the LMP--When and How, While Also Keeping It Simple [Liability Matching Portfolio]
Replies: 11
Views: 1705

Re: Building the LMP--When and How, While Also Keeping It Simple

Thank you for the responses thus far and recommended reading. Perhaps I should have been more clear about what I'm trying to do. My goal was not to build a full, formal LMP covering all expenses EXCLUSIVE of Social Security through end of life for me and DW. Instead, my goal was to build what I'm calling a "pseudo-LMP" to cover the bridge years between me starting Social Security (2036, est. date when we will both stop full-time work, although we will probably both continue to have some part-time work) and beginning of 2046 (date when DW starts Social Security), as well as a second bridge covering the annual gap between combined Social Security and estimated expenses from 2046 (a $20k gap per year in 2024 dollars) through 2070 (age 95 for ...
by FriedOkra
Mon Jul 08, 2024 10:36 pm
Forum: Personal Investments
Topic: Building the LMP--When and How, While Also Keeping It Simple [Liability Matching Portfolio]
Replies: 11
Views: 1705

Building the LMP--When and How, While Also Keeping It Simple [Liability Matching Portfolio]

For the purposes of this discussion, I am going to provide some basic information about our situation, but this will not include a full portfolio analysis due to a variety of complications in our situation that will only distract from the purpose of this post. My purpose here is to address strategies for building an LMP, when and how to do it, and how to keep it simple. DW has pleaded with me to set up our retirement so that things will occur as "automatically" as possible, as she has almost zero interest or confidence in managing anything remotely complicated after I am gone.

Basic Info:

EF: 8 months of expenses
Debt: None, other than mortgage that will be paid off in 2032 (4%) and cc bill that is paid in full monthly
Taxes: MFJ, 22% Fed ...
by FriedOkra
Sat Jun 08, 2024 7:00 am
Forum: Personal Investments
Topic: Has anyone besides me had a Vanguard inbound transfer failure?
Replies: 12
Views: 1565

Re: Has anyone besides me had a Vanguard inbound transfer failure?


I initiated a brokerage transfer, Merrill to Vanguard. Everything seemed to go ok, all the forms were signed and I received a message from Vanguard that the transfer was in progress and may take a few business days. I inquired about it with Vanguard and they said everything was ok. Then ... nothing. I did not receive any notifications of the failure. I chatted with them and they saw the transfer request in my account but didn't know why it failed, and I'd have to call to talk to someone. I'm out of the country and about 12 time zones off of US time, so will call when I can, but I was wondering if anyone else had this problem. This doesn't give me much confidence in Vanguard. I can understand if something went wrong with the transfer, but ...
by FriedOkra
Sat Jun 01, 2024 4:11 am
Forum: Personal Investments
Topic: Silver Triple Top
Replies: 25
Views: 4764

Re: Silver Triple Top

My only speculation in silver involves looking through my pocket change, picking out the pre-1965 coins that aren’t pennies or nickels, and—when I have enough to make it worth my time—selling them in bulk for their silver value at the local coin shop. And that’s more accurately just cashing in a series of very small windfalls rather than true speculation.

Anything else seems very contrary to BH philosophy and likely to create behavioral patterns that are not good for my financial health.
by FriedOkra
Thu May 30, 2024 4:14 pm
Forum: Personal Investments
Topic: Inheritance + Portfolio Questions
Replies: 24
Views: 4168

Re: Inheritance + Portfolio Questions



Having been in similar shoes a couple of years ago, I strongly recommend selling all of AAPL stock today. There are no tax consequences for doing so. Just make sure it has already been transferred to you as an Inherited IRA before you attempt this.

As for drawdown, I recommend ignoring Fidelity’s calculations of RMD for 2024, which is probably based on your father’s table prior to his death (for which you have my condolences). You have a 10 (arguably 11) year window to drawdown, and 1/11th or 1/10th of the current balance is far more than the $275k they have calculated. I recommend that each year you calculate what the fractional amount is (based on remaining years of drawdown in the denominator) and pull that amount.


Good advice ...
by FriedOkra
Wed May 29, 2024 1:54 pm
Forum: Personal Investments
Topic: Inheritance + Portfolio Questions
Replies: 24
Views: 4168

Re: Inheritance + Portfolio Questions

Having been in similar shoes a couple of years ago, I strongly recommend selling all of AAPL stock today. There are no tax consequences for doing so. Just make sure it has already been transferred to you as an Inherited IRA before you attempt this.

As for drawdown, I recommend ignoring Fidelity’s calculations of RMD for 2024, which is probably based on your father’s table prior to his death (for which you have my condolences). You have a 10 (arguably 11) year window to drawdown, and 1/11th or 1/10th of the current balance is far more than the $275k they have calculated. I recommend that each year you calculate what the fractional amount is (based on remaining years of drawdown in the denominator) and pull that amount.
by FriedOkra
Tue May 28, 2024 5:48 am
Forum: Personal Finance (Not Investing)
Topic: Serving as executor for a friend
Replies: 24
Views: 3160

Re: Serving as executor for a friend

My recollection is that Virginia does not permit out-of-state executors, necessitating the appointment of a secondary representative if you were so named in the will. Your friends should verify what is permitted in their respective states. Each state’s laws are different.
by FriedOkra
Thu May 02, 2024 5:32 pm
Forum: Personal Investments
Topic: ETrade solo 401(k) plan documents
Replies: 17
Views: 1660

Re: ETrade solo 401(k) plan documents

retired@50 wrote: Thu May 02, 2024 10:38 am Age?

If you're not anywhere near 73, then this may be moot, at least for now.

I'd roll the assets into a traditional IRA before RMD age arrives, which will ease all the administrative concerns.

Regards,
After my various experiences with my Solo 401k and now the Vanguard fiasco, my plan is to start moving assets out to a Rollover IRA the day after I turn 59.5, and close the thing as soon as I stop having any regular consulting income. While I get the advantages on paper, for someone like me who has low five figures in net consulting income each year, the Solo 401k feels like more of a hassle than an advantage in retrospect.
by FriedOkra
Wed May 01, 2024 3:55 pm
Forum: Investing - Theory, News & General
Topic: New Vanguard Fees?
Replies: 577
Views: 52699

Re: New Fee Schedule from VGD Brokerage Account

My understanding is that holding index funds and ETFs rather than individuals stocks is a good way to avoid the dilemma of whether or not to pay the class action fee.

Merrill always promised they would file those for me, but I never saw a dime on dozens of class action suits before I got wise, left, and switched everything to index funds.
by FriedOkra
Fri Apr 26, 2024 7:48 am
Forum: Investing - Theory, News & General
Topic: Vanguard to Exit Individual 401(k), Multi-SEP, and SIMPLE IRA Plans With Ascensus Deal
Replies: 1730
Views: 231954

Re: Vanguard to Exit Individual 401(k), Multi-SEP, and SIMPLE IRA Plans With Ascensus Deal



… I am strongly inclined to simply transfer the existing plan to Fidelity, but I am annoyed at the $75 transaction fee to liquidate the VBTLX holding down the road at Fidelity. …


Are you sure there a fee to sell VBTLX in a Fidelity i401k?

In a retail account, Fidelity does not charge to sell or to re-invest dividends in Vanguard mutual funds. The fee only applies to purchases.


Thank you. The fine print on the fund page itself indicates a $75 transaction fee, but I now see in the footnote that it says, "You will only be charged a transaction fee when you buy a FundsNetwork TF fund, not when you sell one."

I will have to trust that this addresses that concern, but my main question remains: If I can't transact within Vanguard's ...
by FriedOkra
Fri Apr 26, 2024 7:23 am
Forum: Investing - Theory, News & General
Topic: Vanguard to Exit Individual 401(k), Multi-SEP, and SIMPLE IRA Plans With Ascensus Deal
Replies: 1730
Views: 231954

Re: Vanguard to Exit Individual 401(k), Multi-SEP, and SIMPLE IRA Plans With Ascensus Deal

I am stuck in this boat. The balance at my pre-tax Vanguard Solo 401(k)--started last year--is relatively small (about $8k) and currently invested entirely in VBTLX Vanguard Total Bond Market Index Admiral. I am 57, so I understand that a rollover to my Rollover IRA (also at Vanguard) is not an option because my business is not closing, and I am not yet 59 1/2.

I am strongly inclined to simply transfer the existing plan to Fidelity, but I am annoyed at the $75 transaction fee to liquidate the VBTLX holding down the road at Fidelity. Is there a cash position within Vanguard Solo 401(k) accounts, whereby I could sell the VBTLX, then have everything in cash when it lands at Fidelity? If so, how do I get there? I don't have transaction ...
by FriedOkra
Sat Mar 23, 2024 2:19 pm
Forum: Personal Investments
Topic: T-IRA/Roth IRA/Solo 401K Mess
Replies: 2
Views: 439

Re: T-IRA/Roth IRA/Solo 401K Mess

Thank you for the clarifications. I feel dumb about making this mistake, but I keep trying to remind myself that I didn't do anything objectively wrong...I just complicated matters unintentionally.
by FriedOkra
Thu Mar 21, 2024 7:19 am
Forum: Personal Investments
Topic: T-IRA/Roth IRA/Solo 401K Mess
Replies: 2
Views: 439

T-IRA/Roth IRA/Solo 401K Mess

I think I've unintentionally created a bit of a mess with my IRA contributions last year, and I am trying to sort out the best way to handle them as I prepare 2023 tax returns.

DW works for a corporation and as of Jan 1, 2023, had access to an employer-sponsored regular 401k. I am a self-employed consultant and have a passthrough LLC, and as of Jan 1, 2023, I did not have access to any type of 401k or other "employer-sponsored plan." (I did have a small, part-time W2 job at the very end of the year as well, but no access to an employer-sponsored plan through that job.) Our combined income was such that DW was ineligible to make tIRA contributions (but could still make Roth contributions), but I was still eligible to make tIRA ...
by FriedOkra
Tue Mar 19, 2024 5:51 pm
Forum: Personal Investments
Topic: Retired early and need to sell some taxable.. Average cost
Replies: 15
Views: 2767

Re: Retired early and need to sell some taxable.. Average cost

I received a substantial amount of inherited VTSAX at stepped up value that was then imported to Vanguard from ML. I have never been able to use anything but average cost, I guess because of the decades of noncovered shares.
by FriedOkra
Mon Mar 18, 2024 7:33 am
Forum: Personal Investments
Topic: Investment Regroup
Replies: 5
Views: 709

Re: Investment Regroup

A less complicated alternative for your $200k that meets your desire for nearly immediate access is to park that cash in your Vanguard brokerage account in VUSXX—their treasury money market option, presently paying around 5.25%. It is the simplest and one of the most lucrative ways to hold cash nearly risk-free, and the earnings should be tax-exempt for NY state taxes.
by FriedOkra
Mon Mar 11, 2024 9:20 pm
Forum: Personal Finance (Not Investing)
Topic: Father died and I'm totally overwhelmed on what to do
Replies: 58
Views: 12476

Re: Father died and I'm totally overwhelmed on what to do

I handled my best friend's estate when he died in 2010. I handled my father's estate when he died in 2021. I helped my wife handle her mother's estate when she died in 2022 and another friend that year as well.

Without question, I would strongly recommend purchasing NOLO's book The Executor's Guide: Settling A Loved One's Estate or Trust (2021 version still available on Amazon; 2024 edition coming out in June). Get this ASAP. It will give you a timeline for what needs to be done now and what can wait.

While most of the things folks have referenced in this thread are useful, what's important is WHEN to worry about doing each of them. Right now, you just have 573 suggestions, with little help on what to do first. And there is definitely a ...
by FriedOkra
Mon Mar 11, 2024 6:43 pm
Forum: Personal Investments
Topic: Deep Dive: Poor Tax Efficiency of Vanguard International Funds 2023
Replies: 41
Views: 8557

Re: Deep Dive: Poor Tax Efficiency of Vanguard International Funds 2023

I’ve been sounding this alarm for over a year, but all I got in response was cricket noises.
by FriedOkra
Mon Mar 11, 2024 6:14 pm
Forum: Personal Investments
Topic: Thinking of Switching From Big Name Manager to Vanguard
Replies: 29
Views: 4051

Re: Starting the SSRI Paperwork

First result if you combine SSRI and Social Security on Google: https://www.ssa.gov/open/data/RSI.html
by FriedOkra
Sun Mar 10, 2024 10:24 pm
Forum: Personal Investments
Topic: Thinking of Switching From Big Name Manager to Vanguard
Replies: 29
Views: 4051

Re: Starting the SSRI Paperwork

dodecahedron wrote: Sun Mar 10, 2024 8:09 pm What is SSRI? Surely not, in this context, Selective Serotonin Reuptake Inhibitor? And also not Social Sciences Research Institute?
Social Security Retirement Insurance. It's the official acronym that the Social Security Administration uses for the program.
by FriedOkra
Sun Feb 25, 2024 6:41 pm
Forum: Personal Investments
Topic: Inherited accounts adjustments
Replies: 28
Views: 3906

Re: Inherited accounts adjustments

I also really like Retired@50's suggestion (he always has good suggestions!) of using the dividends to treat yourself to dinner on your father's birthday or some other special day as a way of honoring his legacy.
by FriedOkra
Sun Feb 25, 2024 6:37 pm
Forum: Personal Investments
Topic: Inherited accounts adjustments
Replies: 28
Views: 3906

Re: Inherited accounts adjustments

I inherited my share of my father's assets when he passed away in 2021. One of the largest holdings he had was VWENX Vanguard Wellington Fund Admiral Shares (in taxable!), which he was always pushing more money into. Once I received my share after he passed, I knew I needed to get that fund out of taxable because of the intense tax drag, but I also wasn't sure I wanted to hold onto it as I looked to drastically simplify his holdings (which also contained over 250 different individual stock positions and dozens of individual bond positions foisted on him by a churning Merrill advisor late in his life). But then I felt really, REALLY guilty, in the same way you describe, about blowing up the foundation of his legacy. The Wellington fund had ...
by FriedOkra
Sat Feb 10, 2024 6:04 am
Forum: Personal Investments
Topic: Why didn't I receive the open market price?
Replies: 20
Views: 2516

Re: Why didn't I receive the open market price?

I tried to purchase a relatively small amount ($750) of VGIT as a market order after market close at Vanguard yesterday, and the listed spread for the order before confirmation was nearly 1.8% of share price. The average spread for VGIT when the market is open is 0.1%. So I didn’t place the order and will try again Monday when the market is open.

I’d read many times before that I shouldn’t place market ETF orders when the market is closed. This situation allowed me to see why in real terms.
by FriedOkra
Sun Feb 04, 2024 5:26 am
Forum: Personal Investments
Topic: Principal Financial 401(k) is trash - best option?
Replies: 12
Views: 2299

Re: Principal Financial 401(k) is trash - best option?

DW is also stuck with a Principal 401k that defaults into putting 65% of every employee’s money into the Principal annuity product they’re in class action over. (Make sure to tell your co-workers to get out of that nonsense if you have the same problem.) Beyond that, most of the 12 available options (yes, just 12) also have very high ERs and are so sliced and diced that there is no way to capture the whole market.

Fortunately, there were two low ER Vanguard fund options available, one a growth tilt, the other a capital appreciation fund, so we went all in on those. In your case, I would go all in on PLFPX at least enough to get any match, then invest the post-tax remainder elsewhere until your company wises up. At least you can capture ...
by FriedOkra
Thu Feb 01, 2024 3:31 pm
Forum: Personal Investments
Topic: Did I buy at the wrong time?!
Replies: 18
Views: 2684

Re: Did I buy at the wrong time?!

02nz wrote: Thu Feb 01, 2024 1:07 pm
FriedOkra wrote: Thu Feb 01, 2024 11:15 am As livesoft’s questions suggest, you should also look up what “buying the dividend” means and why you don’t want to do it.
It doesn't matter for a bond ETF. You either get the dividend - taxed as ordinary income - or the price appreciation of the NAV, also taxed as ordinary income. Only difference is the dividend may have a state income tax benefit, since the underlying holdings are federal debt. But if you buy and hold this only matters for at most one month.
As I implied above, I'm aware. But as the framing of my original response indicates, if the OP is worried about what's going on here, s/he should probably know what "buying the dividend" means for other investment types.
by FriedOkra
Thu Feb 01, 2024 11:32 am
Forum: Personal Investments
Topic: Did I buy at the wrong time?!
Replies: 18
Views: 2684

Re: Did I buy at the wrong time?!

livesoft wrote: Thu Feb 01, 2024 11:20 am
FriedOkra wrote: Thu Feb 01, 2024 11:15 am As livesoft’s questions suggest, you should also look up what “buying the dividend” means and why you don’t want to do it.
In this case though I think it doesn't matter because of something about the dividends that I don't want to point out right now.
That’s fair. But the OP should still know what it means and when it applies.