Search found 540 matches

by ofckrupke
Sat Nov 17, 2018 1:50 am
Forum: Investing - Help with Personal Investments
Topic: WOW - big Vanguard capital gains distribution coming this year
Replies: 6
Views: 1121

Re: WOW - big Vanguard capital gains distribution coming this year

Mid-cap Growth Index fund, for example, (VMGIX) has a 23% turnover rate. I'll be curious to see what the mid-cap growth index fund generates in capital gains this year. Mid-cap growth index fund has an ETF share class VOT, and through VOT low-basis stock shares can be purged by transfer to its Auth...
by ofckrupke
Fri Nov 16, 2018 6:29 pm
Forum: Investing - Help with Personal Investments
Topic: Traditional IRA rollover to 403b witholding amount
Replies: 15
Views: 342

Re: Traditional IRA rollover to 403b witholding amount

are there any other means to take this money out of my TIRA, short of doing a direct distribution? It's only after-tax to the extent of its basis as calculated in the form 8606 for the most recent year any non-deductible rollover or contribution to, or conversion from, any IRA you own. That is, if ...
by ofckrupke
Fri Nov 16, 2018 4:48 pm
Forum: Investing - Help with Personal Investments
Topic: Traditional IRA rollover to 403b witholding amount
Replies: 15
Views: 342

Re: Traditional IRA rollover to 403b witholding amount

Withhold zero for this operation. If you withhold more than zero, you will incur a tax liability on the amount withheld itself; after all, this portion of the IRA liquidation will be a distribution from the IRA to what amounts to a taxable, zero-interest-bearing escrow account held by the government...
by ofckrupke
Fri Nov 16, 2018 4:38 pm
Forum: Investing - Help with Personal Investments
Topic: [Tax loss harvesting (TLH) for VNYTX - Vanguard NY Tax Exempt]
Replies: 2
Views: 122

Re: [Tax loss harvesting (TLH) for VNYTX - Vanguard NY Tax Exempt]

Can anyone suggest a good TLH partner for VNYTX? Also, in regards to the 6 month rule, If you are selling multiple blocks of a municipal bond fund, is the dividend money derived from the shares purchased within the last 6 months the only dividend moneys applied back? Or, are all dividends from all ...
by ofckrupke
Fri Nov 16, 2018 3:01 pm
Forum: Investing - Help with Personal Investments
Topic: Mortgage payoff given new 2018 tax code
Replies: 15
Views: 1630

Re: Mortgage payoff given new 2018 tax code

ltiku, it sounds like you are way on top of this...and should probably be offering rather than asking advice here. (How's that for a welcome?) If the illiquidity premium seems to answer for its risk, on a commitment of this scale, then go for it. Do think about gift bunching with a DAF since you wil...
by ofckrupke
Fri Nov 16, 2018 1:03 pm
Forum: Investing - Help with Personal Investments
Topic: Mortgage payoff given new 2018 tax code
Replies: 15
Views: 1630

Re: Mortgage payoff given new 2018 tax code

In your bracket (which should include the 3.8% NIIT for the hypothetical taxable bond alternative of a 3Y treasury, btw), a mix of state-specific and short-term national muni funds, or a term-specific muni ETF (e.g. iShares® iBonds® Dec 2021 Term Muni Bond ETF, IBMJ) are likely more appropriate alte...
by ofckrupke
Tue Nov 13, 2018 1:55 pm
Forum: Personal Finance (Not Investing)
Topic: Purchasing New Home - Down Payment 20 or 25%??
Replies: 19
Views: 1116

Re: Purchasing New Home - Down Payment 20 or 25%??

you can't be sure that a refi will be attractive at any point in the future, but if this is not a forever home then the decision is colored by the expectation that recovery of the extra 33k principal commitment will be completed at sale, rather than gradually dribbled back as a component of the diff...
by ofckrupke
Sat Oct 27, 2018 10:11 pm
Forum: Personal Finance (Not Investing)
Topic: why split property tax payment with SALT limit; why itemize?
Replies: 19
Views: 2290

Re: why split property tax payment with SALT limit; why itemize?

1) Is there any reason to split the payments across tax years? It depends. If (neglecting the smaller deduction items) a) the full assessment is presented in the fall and b) the annual property tax assessment is more than 2/3 and less then twice the state's standard deduction for your filing status...
by ofckrupke
Thu Oct 25, 2018 10:58 pm
Forum: Investing - Theory, News & General
Topic: US T bills - first time user
Replies: 138
Views: 13112

Re: US T bills - first time user

Thanks for mentioning that they show the adjusted cost basis on the statements. That was something I'd also been wondering about. I suppose they would change the cost basis that they show on line, too. Yes, I can confirm that. Personally I'd prefer daily adjustment along the constant yield curve si...
by ofckrupke
Thu Oct 25, 2018 8:38 pm
Forum: Investing - Theory, News & General
Topic: US T bills - first time user
Replies: 138
Views: 13112

Re: US T bills - first time user

Outstanding find. In particular the part where they say they will adjust cost basis (along a constant yield curve by default) to amortize premium only at coupon dates rather than daily, from Dec 2016 onward. If this is true then it means no automatic adjustment at year's end (for non 31Dec/30Jun dat...
by ofckrupke
Thu Oct 25, 2018 4:51 pm
Forum: Personal Finance (Not Investing)
Topic: Why Does Social Security Want a Form L564 From My Wife?
Replies: 16
Views: 1664

Re: Why Does Social Security Want a Form L564 From My Wife?

isn't part of the problem here that the term HSA is being variously by topic participants to stand for both a Health Saving Account as well as a High Deductible Health(care) Plan (HDHP), whereas these are separate entities. [This only compounds an independent tendency to confuse HSA contribution eli...
by ofckrupke
Thu Oct 25, 2018 3:06 pm
Forum: Investing - Theory, News & General
Topic: US T bills - first time user
Replies: 138
Views: 13112

Re: US T bills - first time user

The officer is on the right path but you don't get it all in one year . Yeah, ok, correct. Federally, one may choose whether to amortize premium bonds. To do so, one must choose on the first applicable tax return. But one's broker may opt as a matter of policy to amortize unless told otherwise, eff...
by ofckrupke
Thu Oct 25, 2018 2:16 pm
Forum: Investing - Theory, News & General
Topic: US T bills - first time user
Replies: 138
Views: 13112

Re: US T bills - first time user

Just to try out the process, I bought a note that matures in February. The price was $1,000.94, plus accrued interest of $5.68. The yield is 2.75%, my understanding is that I will get $13.75 interest and $1000 principal, when it matures in Feb. Will the $0.94 premium be reported to me as a capital ...
by ofckrupke
Thu Oct 25, 2018 1:22 pm
Forum: Investing - Help with Personal Investments
Topic: Should I tax loss harvest...?
Replies: 12
Views: 1290

Re: Should I tax loss harvest...?

Oh, darn it. I did get a dividend, but only of a few hundred dollars, at the end of September. Should I be worrying about that, if the capital loss I'm harvesting is like 10x the size of the dividend? Depends on whether you think it's worth a couple of bucks to rub your own nose in the formal error...
by ofckrupke
Wed Oct 17, 2018 10:39 am
Forum: Personal Finance (Not Investing)
Topic: Amended return required when error only impacts capital loss carryforward?
Replies: 4
Views: 427

Re: Amended return required when error only impacts capital loss carryforward?

In the same situation, I filed an amendment for the prior year return. My reasoning was that ST and LT net capital gain/loss, extracted from Schedule D rather than from form 1040, are actually line entries in both the account and return transcripts maintained by the IRS after processing the return. ...
by ofckrupke
Tue Oct 16, 2018 3:16 pm
Forum: Investing - Theory, News & General
Topic: Stupid question on treasury direct
Replies: 3
Views: 508

Re: Stupid question on treasury direct

So how do i know that i will end up paying a fair price? You will get the same price everyone else gets. That's just how the auction is designed. When you buy $1,000 you pay the same price as a bank buying $100 million. That addresses the matter of fairness vis a vis other buyers/bidders. For the O...
by ofckrupke
Tue Oct 16, 2018 12:51 pm
Forum: Investing - Help with Personal Investments
Topic: UC DCO's too high return? [Univ. of CA Defined Contribution Plan]
Replies: 4
Views: 311

Re: UC DCO's too high return? [Univ. of CA Defined Contribution Plan]

Is an 18.1% annual return on the UC DCP not incredibly high, i.e. outside reasonable historical bounds? Consider the following: for calendar year 2017, the Russell 3000 index (broad US market) return was 21.13%. the MSCI AWCI ex-US (all-world ex-US) return was 27.04%. the Bloomberg Barclays US Aggr...
by ofckrupke
Tue Oct 16, 2018 12:01 pm
Forum: Investing - Help with Personal Investments
Topic: First time TLH Questions, constrained by spouse's work
Replies: 17
Views: 1402

Re: First time TLH Questions, constrained by spouse's work

Being bought in the 61 day window surrounding a taxable sale is sufficient to make a share a replacement share, and the sale a wash sale - continuing presence ("existence") in one of the taxpayer's accounts at the time of the sale in question is not a necessary condition. ofckrupke — This doesn't s...
by ofckrupke
Tue Oct 16, 2018 8:58 am
Forum: Investing - Help with Personal Investments
Topic: First time TLH Questions, constrained by spouse's work
Replies: 17
Views: 1402

Re: First time TLH Questions, constrained by spouse's work

Based on their most recent post I am not sure the OP gets it. Selling in the IRA before selling in the taxable account doesn't get them off the hook; a pair of clocks may be said to start at each sale in a taxable account, one running backward and one forward, out through 30 days before and after th...
by ofckrupke
Mon Oct 15, 2018 3:51 pm
Forum: Investing - Help with Personal Investments
Topic: First time TLH Questions, constrained by spouse's work
Replies: 17
Views: 1402

Re: First time TLH Questions, constrained by spouse's work

Second question, about 2 weeks ago I bought some of the two current funds in our Roth accounts as I saw there was some dividend payments just sitting in them. Having read about the IRS treating IRAs as part of the wash sale calculation am I right to assume that this should be fine because the purch...
by ofckrupke
Thu Oct 11, 2018 12:01 pm
Forum: Investing - Help with Personal Investments
Topic: Tax loss harvest international small cap with what?
Replies: 11
Views: 444

Re: Tax loss harvest international small cap with what?

A possible way around that dilemma is to use a tax-advantaged account for the substitute fund. That way, you can swap back after 30 days . [...] [...] Thanks for your point on the tax advantaged,it makes sense as a strategy to make sure you can jump back into the original fund after 30 days after 3...
by ofckrupke
Tue Oct 09, 2018 11:37 am
Forum: Investing - Help with Personal Investments
Topic: Looking for TBM at Fidelity
Replies: 6
Views: 449

Re: Looking for TBM at Fidelity

I am actually seeing ERs of .15% for FBIDX and .05% for FSITX. Is it possible the ERs have come down very recently and I am just seeing old info? Yes. Linked is a FAQ document PDF from Fidelity concerning their broad fee reduction on index funds effective 1 Aug 2018 and plan to merge share classes....
by ofckrupke
Tue Oct 09, 2018 11:11 am
Forum: Investing - Help with Personal Investments
Topic: Looking for TBM at Fidelity
Replies: 6
Views: 449

Re: Looking for TBM at Fidelity

See Fidelity® U.S. Bond Index Fund. Investor class FBIDX, Premium class FSITX, both now at ER=0.025% and to be merged later this year in a presumably non-taxable event.
by ofckrupke
Tue Oct 09, 2018 10:36 am
Forum: Investing - Help with Personal Investments
Topic: Tax-effective yields for various MM Funds
Replies: 16
Views: 1311

Re: Tax-effective yields for various MM Funds

Thanks for the corrections! Here is the updated table. Does it look right? The whole 3.8% NIIT applies to VMFXX. Also with VMFXX the exemption from CA taxation is in proportion to the income from US government obligations (66.3% from 2017 from the linked pdf), since the 50% holding threshold is sat...
by ofckrupke
Tue Oct 09, 2018 12:40 am
Forum: Investing - Help with Personal Investments
Topic: Tax-effective yields for various MM Funds
Replies: 16
Views: 1311

Re: Tax-effective yields for various MM Funds

1. Is my math in the below table correct? Maybe, but it's applicable to no one, because anyone in 35%/11.3% brackets is also subject to the 3.8% Net Investment Income tax (doesn't apply to the federally exempt VMSXX or VCTXX though) that showed up for tax years 2013 and thereafter. VMSXX is fully C...
by ofckrupke
Fri Sep 28, 2018 10:47 am
Forum: Investing - Help with Personal Investments
Topic: Schwab Short Term Bond Index vs. T. Bills
Replies: 13
Views: 819

Re: Schwab Short Term Bond Index vs. T. Bills

I now chiefly hold treasuries with maturities shorter than SWSBX's 2.7 year duration in taxable (because that's where I want to be now on the yield curve), but I do use SWSBX there to accumulate loose change: dividends, coupon interest, etc - that is, in place of a money market fund, but at much low...
by ofckrupke
Tue Sep 25, 2018 3:15 pm
Forum: Investing - Help with Personal Investments
Topic: best use of $115k
Replies: 5
Views: 1325

Re: best use of $115k

Here's my analysis on the benefit of escaping mortgage interest premiums early via a prepayment, expressed as an enhancement to the latter's native investment return. On the loan itself, the prepay pays 4.5% before tax, the big question there is just whether the money is locked up against alternate ...
by ofckrupke
Thu Sep 20, 2018 10:06 pm
Forum: Investing - Help with Personal Investments
Topic: Did I buy the wrong Treasury?
Replies: 4
Views: 729

Re: Did I buy the wrong Treasury?

Thanks, that was news to me. I bet it was news in NC. So folks in NC, just mark me as an Emily Litella for your state, "never mind" what I wrote above. I'd be interested to hear if there are any other taxing states with such practice. Would like to know also whether that ruling opens up an exploit f...
by ofckrupke
Thu Sep 20, 2018 9:49 pm
Forum: Investing - Help with Personal Investments
Topic: Did I buy the wrong Treasury?
Replies: 4
Views: 729

Re: Did I buy the wrong Treasury?

It just occurred to me that the coupon interest rate on this bond is only 0.875%, so the rest of the yield does not come from interest. The rest is called a the rest comes from the "market discount", which is essentially the capital gains on the difference between what I paid for the bond and what ...
by ofckrupke
Wed Sep 19, 2018 5:17 pm
Forum: Personal Finance (Not Investing)
Topic: Which mortgage would you prepay?
Replies: 12
Views: 1121

Re: Which mortgage would you prepay?

Easily 1. Not deductible, higher interest rate. No brainer. +1 and it would free up some cash flow each month. Agreed. Also less term risk than #2. Another way of viewing the change in cash flow is as the monthly maturity proceeds from a sinking ladder/portfolio of 4.125%-after-tax-yielding bonds e...
by ofckrupke
Wed Sep 19, 2018 1:43 pm
Forum: Investing - Help with Personal Investments
Topic: Concerns over funding priority when investing with debt
Replies: 42
Views: 2200

Re: Concerns over funding priority when investing with debt

Your marginal rate on taxable investments is 32+9.3+3.8*(1-0.093)% or around 44.8%. You are SALT capped but now pay $ 19.2k $18k in interest annually, so you are at least $ 5k 4k into itemizing and will continue to itemize under the current loan terms until the loan balance drops by at least $100 -...
by ofckrupke
Wed Sep 19, 2018 12:16 pm
Forum: Investing - Help with Personal Investments
Topic: Concerns over funding priority when investing with debt
Replies: 42
Views: 2200

Re: Concerns over funding priority when investing with debt

For my tax situation (32% tax bracket for 2018), I think it provides only a little tax benefit to do itemized deduction. Also, I expect to get >4% APR mortgage if I refinance before the 5/1 ARM reset in 2021. To me ~4% after tax return looks good. Your marginal rate on taxable investments is 32+9.3...
by ofckrupke
Tue Sep 18, 2018 11:29 pm
Forum: Investing - Help with Personal Investments
Topic: Mechanics of IRA Rollover w/ Tax Basis into Employer Plan
Replies: 14
Views: 819

Re: Mechanics of IRA Rollover w/ Tax Basis into Employer Plan

My experience was as follows. The IRA was at Fidelity, the destination employer plan was at TIAA. To reduce the chance of a screw-up resulting in post-tax money getting transferred, we sold the amount to be transferred from an existing intermediate bond fund holding into the core/settlement fund, le...
by ofckrupke
Wed Sep 12, 2018 10:57 pm
Forum: Investing - Theory, News & General
Topic: Short-term Treasury vs. Limited-Term Tax-Exempt
Replies: 10
Views: 1352

Re: Short-term Treasury vs. Limited-Term Tax-Exempt

Kevin: I fuzzily expect to sell VSBSX eventually for a small loss and to offset ordinary income for both fed and CA taxation in the $3k annual window with that loss, whether in the realization year or thereafter by carryover. As such I don’t mind buying a small, partial month dividend that is state ...
by ofckrupke
Tue Sep 11, 2018 10:30 pm
Forum: Investing - Theory, News & General
Topic: Short-term Treasury vs. Limited-Term Tax-Exempt
Replies: 10
Views: 1352

Re: Short-term Treasury vs. Limited-Term Tax-Exempt

I did similar recently but was VWSUX -> (5 parts VSBSX + 4 parts VUSXX) to maintain the ~1.1y duration. Would rather have had a single treasury fund @ 1.1y because of the arch in the curve between 0 and 2 years, but haven't upgraded the account to brokerage form so options were fewer. 27.8%+9.3% rat...
by ofckrupke
Thu Aug 30, 2018 10:04 pm
Forum: Investing - Theory, News & General
Topic: QSPIX - thoughts on interesting fund
Replies: 1503
Views: 212791

Re: QSPIX - thoughts on interesting fund

So thought it might be Interesting to compare the recent returns of the two flavors of the aqr style premium funds: Qspix- the original fund Qslix- the low volatility version. I think it uses half as much leverage. 1year returns as of 8/20 Qspix: -1.15% Qslix: +0.32% I seem to recall some discussio...
by ofckrupke
Thu Aug 30, 2018 5:24 pm
Forum: Investing - Help with Personal Investments
Topic: Inter term treasury - portfolio turnover
Replies: 9
Views: 572

Re: Inter term treasury - portfolio turnover

The transaction costs come out of the fund's assets, just like the management expenses do, so they plainly add to the cost of ownership (or detract from the fund's overall return if you prefer to look at it that way) since the fund offers and redeems shares at its end-of-day net asset value per shar...
by ofckrupke
Tue Aug 28, 2018 8:22 pm
Forum: Investing - Theory, News & General
Topic: 2-Year Treasury Note Auction
Replies: 102
Views: 9519

Re: 2-Year Treasury Note Auction

Then I guess he shoulda bought 26.
by ofckrupke
Tue Aug 28, 2018 2:05 pm
Forum: Investing - Theory, News & General
Topic: 2-Year Treasury Note Auction
Replies: 102
Views: 9519

Re: 2-Year Treasury Note Auction

ray.james wrote:
Tue Aug 28, 2018 1:46 pm
What did I miss?
You should multiply the limited-term yield by (1-0.093)/(1-0.24-0.093) to get its TEY (if you won't itemize federally or are SALT-capped...and are not subject to the 3.8% Net Investment Income surTax (NIIT), which you didn't mention).
by ofckrupke
Tue Aug 28, 2018 10:28 am
Forum: Investing - Theory, News & General
Topic: You Invest from JP Morgan [free trades offer]
Replies: 69
Views: 5173

Re: Discount broker stocks dive on news J.P. Morgan Chase to offer free trading

It is probably more about retaining/growing than winning accounts, but this won't retain us unless there is also an umbrella provision wherein non-banking assets custodied at JPM count (with some nonzero multiplier anyway) toward fee waiver thresholds on the Premier banking products; otherwise, we'...
by ofckrupke
Mon Aug 27, 2018 5:29 pm
Forum: Investing - Theory, News & General
Topic: 2-Year Treasury Note Auction
Replies: 102
Views: 9519

Re: 2-Year Treasury Note Auction

I guess you shoulda bought 50.
by ofckrupke
Mon Aug 27, 2018 2:12 pm
Forum: Investing - Theory, News & General
Topic: 2-Year Treasury Note Auction
Replies: 102
Views: 9519

Re: 2-Year Treasury Note Auction

When bid and ask for q10 are not both best offers at Schwab in the middle of the day for a particular issue, it sort of tells you that their bond desk is preferentially buying or selling the issue against inventory rather than purely market-making for mom and pop clientele. Could you please elabora...
by ofckrupke
Mon Aug 27, 2018 12:04 pm
Forum: Investing - Theory, News & General
Topic: 2-Year Treasury Note Auction
Replies: 102
Views: 9519

Re: 2-Year Treasury Note Auction

When bid and ask for q10 are not both best offers at Schwab in the middle of the day for a particular issue, it sort of tells you that their bond desk is preferentially buying or selling the issue against inventory rather than purely market-making for mom and pop clientele. And the width of the spre...
by ofckrupke
Sun Aug 26, 2018 9:49 pm
Forum: Investing - Help with Personal Investments
Topic: Best timing for capital gain/loss
Replies: 5
Views: 661

Re: Best timing for capital gain/loss

Would it be better for me to sell off all my unrealized long term capital gains now and pay 15% long-term capital gain tax and then sell off the losses in 2019, so I can harvest the losses when my income tax bracket goes up? It's a much better December than August question. Harvest the loss now. Re...
by ofckrupke
Sun Aug 26, 2018 4:09 pm
Forum: Investing - Help with Personal Investments
Topic: Saving for down payment in Schwab taxable brokerage
Replies: 6
Views: 444

Re: Saving for down payment in Schwab taxable brokerage

I updated the OP with my marginal tax rate. Right now, it's at 12%, and I don't really expect it to go above that for the next 4 years at least. What bonds would you recommend I look into? Because I live in CA, I might be able to take advantage of a tax-free CA muni bond fond as well. It would be h...
by ofckrupke
Sat Aug 25, 2018 11:29 pm
Forum: Personal Finance (Not Investing)
Topic: What is your stealth way to save monthly?
Replies: 87
Views: 9759

Re: What is your stealth way to save monthly?

"The trick, William Potter, is not minding that it hurts."

- Or is it someone else's notice that you hope to avoid?
by ofckrupke
Sat Aug 25, 2018 9:48 pm
Forum: Investing - Help with Personal Investments
Topic: Take pension immediately upon retirement, or use 457 funds?
Replies: 36
Views: 1721

Re: Take pension immediately upon retirement, or use 457 funds?

With that question settled, I hope you are not planning to retire in community, because the deal is so good that I'd be worried about employer incentives offered to 911 despatchers who don't send ambulances to city service retiree addresses :-O
by ofckrupke
Sat Aug 25, 2018 9:26 pm
Forum: Investing - Help with Personal Investments
Topic: Take pension immediately upon retirement, or use 457 funds?
Replies: 36
Views: 1721

Re: Take pension immediately upon retirement, or use 457 funds?

So, my question is, what am I missing? Other than the possibility of pension fund trouble (unlikely, I work for a wealthy municipality and the pension fund is currently 100% funded), what dangers have I not considered? What is the survivor's benefit if you croak in the period between separation fro...
by ofckrupke
Sat Aug 25, 2018 2:59 pm
Forum: Personal Finance (Not Investing)
Topic: Recasting Mortgage Options
Replies: 8
Views: 1224

Re: Recasting Mortgage Options

Right - so if I keep the loan exactly as is, I pay 2.76% on that $5,600 in interest (and smaller each year), while the next $1,500 (before I hit the standard deduction) interested is effectively 3.625%. This is a blended rate of 2.94%, decreasing each year as I pay less interest with the benefit ex...
by ofckrupke
Thu Aug 23, 2018 11:26 am
Forum: Investing - Help with Personal Investments
Topic: Municipal Bond Ladder / Tax Efficient Allocation of New Funds
Replies: 23
Views: 1931

Re: Municipal Bond Ladder / Tax Efficient Allocation of New Funds

How would you compare a VA-specific bond ladder against a bond fund? The closer the fund's (or combination of multiple funds') duration and distribution of credit across the various letter grades to the issues in your portfolio, the more appropriate the comparison. Differences in tax cost, manageme...