Search found 526 matches

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: 414

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: 485

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: 290

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: 1367

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: 1367

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: 1367

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: 408

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: 431

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: 431

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: 1177

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: 1177

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: 788

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: 1318

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: 724

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: 724

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: 1115

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: 2183

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: 2183

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: 808

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: 1314

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: 1314

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: 1435
Views: 207998

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: 9408

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: 9408

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: 5002

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: 9408

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: 9408

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: 9408

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: 659

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: 440

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: 9722

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: 1705

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: 1705

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: 1214

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: 1913

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...
by ofckrupke
Tue Aug 21, 2018 10:34 am
Forum: Investing - Theory, News & General
Topic: You Invest from JP Morgan [free trades offer]
Replies: 69
Views: 5002

Re: You Invest from JP Morgan

What do others think? 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 pr...
by ofckrupke
Thu Aug 16, 2018 6:21 pm
Forum: Investing - Theory, News & General
Topic: Invest in Tesla?
Replies: 330
Views: 25593

Re: Invest in Tesla?

Alas Apple's board tried that with John Scully, formerly of Pepsico, with Jobs along as the guru founder. Eventually they had to fire Jobs who went on to found Lisa NeXT (unsuccessful) and Pixar (very successful). We've seen how that all worked out. FIFY (Lisa preceded Macintosh). Whether Lisa or N...
by ofckrupke
Wed Aug 15, 2018 12:48 pm
Forum: Investing - Help with Personal Investments
Topic: Retirement guidance for 38 yr old in Silicon Valley CA
Replies: 13
Views: 2388

Re: Retirement guidance for 38 yr old in Silicon Valley CA

Pay off the mortgage on the Chico house. With a 250k balance you get no federal deduction under the current tax regime unless you are giving at least 4-5k to charity annually, so the after-tax return on prepayment is at least 0.907 times the interest rate on the note [ thanks Ron! ]. If you pay off ...
by ofckrupke
Wed Aug 15, 2018 10:47 am
Forum: Investing - Theory, News & General
Topic: Vanguard to offer non-Vanguard ETFs commission-free
Replies: 238
Views: 22928

Re: Vanguard to offer non-Vanguard ETFs commission-free

aristotelian wrote:
Wed Aug 15, 2018 10:09 am
Anyone hearing any news on this? I am in need of a commission free EM ETF to harvest some of today's big drop.
Now that's penny wisdom.
by ofckrupke
Tue Aug 14, 2018 12:01 am
Forum: Investing - Help with Personal Investments
Topic: Confused on bond choice "noise"
Replies: 3
Views: 564

Re: Confused on bond choice "noise"

You may or may not get your 4-5% average return during the next decade, but rearranging things inside a fixed percentage bond slice will have little impact on that outcome. Your 3 year cash/like bucket mitigates much of the interest rate risk of an intermediate duration fund like BND. If you are con...
by ofckrupke
Mon Aug 13, 2018 1:17 pm
Forum: Investing - Help with Personal Investments
Topic: What am I missing about bonds...
Replies: 31
Views: 4089

Re: What am I missing about bonds...

But looking through the Schwab bond funds I’m not sure what compares to the VG total bond fund In a mutual fund, SWAGX. In an ETF, SCHZ. And SWSBX is Schwab's counterpart to the VG short-term bond index fund VBIRX (admiral shares). ETF-wise, SCHO is counterpart to to VG short-term treasury index VG...
by ofckrupke
Mon Aug 13, 2018 11:46 am
Forum: Investing - Help with Personal Investments
Topic: Help explain TIAA Traditional to me
Replies: 20
Views: 1565

Re: Help explain TIAA Traditional to me

The situation is somehow being misconveyed to you. First, there will turn out to be only two flavors of traditional offered in the plan: Retirement Annuity (RA), and Retirement Choice (RC). RA is the one now crediting at 4.0% per annum; RC is the one now crediting at 4.25%. Second, for participants ...
by ofckrupke
Sun Aug 12, 2018 8:01 pm
Forum: Investing - Help with Personal Investments
Topic: VMMXX vs I-Bonds vs High Yield saving account vs ... ?
Replies: 26
Views: 3332

Re: VMMXX vs I-Bonds vs High Yield saving account vs ... ?

What's the difference between buying them through Treasury direct and Vanguard. And between auction and second market? At treasurydirect there is no secondary market access. So a) the treasury notes and bills under discussion are only available there at auction, and b) since they have no provision ...
by ofckrupke
Sun Aug 12, 2018 11:59 am
Forum: Investing - Help with Personal Investments
Topic: VMMXX vs I-Bonds vs High Yield saving account vs ... ?
Replies: 26
Views: 3332

Re: VMMXX vs I-Bonds vs High Yield saving account vs ... ?

You are probably in 22 or 24% federal bracket under TCJA, and 8 or 9.3% state taxation; presently, IMO, treasuries offer the best tax-adjusted return for short maturities like this, and with very low interest rate risk that is further reduced by even weak prediction of when the spend-down will come....
by ofckrupke
Thu Jul 19, 2018 1:56 am
Forum: Investing - Help with Personal Investments
Topic: Rearranging my investments at age 30. How to handle old 403(b), new taxable account, heavy CD ladder asset?
Replies: 10
Views: 1231

Re: Rearranging my investments at age 30. How to handle old 403(b), new taxable account, heavy CD ladder asset?

Hi ofckrupke, thanks for your input! OK, if I'm reading these numbers correctly, FSTVX and FTIPX have about 93.8% and 72.4% qualified dividends respectively. Vanguard's website says VTSAX and VTIAX have about 94.8% and 66.6% qualified dividends respectively. So FSTVX is slightly worse than VTSAX in...
by ofckrupke
Wed Jul 18, 2018 10:24 pm
Forum: Investing - Help with Personal Investments
Topic: Rearranging my investments at age 30. How to handle old 403(b), new taxable account, heavy CD ladder asset?
Replies: 10
Views: 1231

Re: Rearranging my investments at age 30. How to handle old 403(b), new taxable account, heavy CD ladder asset?

This is probably a dumb question, but where do I get the corresponding numbers for Fidelity? It doesn't seem to show up on the Fidelity website, e.g. here: https://fundresearch.fidelity.com/mutual-funds/performance-and-risk/31635V653 . Links provided for most-recent-year QDI and FTC summary info fo...
by ofckrupke
Thu Jun 28, 2018 7:04 pm
Forum: Investing - Help with Personal Investments
Topic: High yield and tax-free munis
Replies: 23
Views: 2686

Re: High yield and tax-free munis

logat2 wrote:
Thu Jun 28, 2018 6:57 pm
this is strange - fidelity is saying my account isn't an advisor account and VNYUX is not available for retail investors
VNYUX is for admiral shares, that aren't typically available in retail accounts outside Vanguard.
Try VNYTX (investor shares).
by ofckrupke
Thu Jun 28, 2018 5:32 pm
Forum: Personal Finance (Not Investing)
Topic: Recent widow: When to take Social Security?
Replies: 17
Views: 1497

Re: Recent widow: When to take Social Security?

And what about pre-tax retirement contributions? Think W-2 medicare-tax-subject earnings (box 5), because this is what SSA means by "earnings". Pre-tax cafeteria plan payroll deductions like employee's portion of health care insurance premiums, or HSA contributions, reduce this number; but generall...
by ofckrupke
Wed Jun 27, 2018 11:52 am
Forum: Investing - Help with Personal Investments
Topic: Am I getting the run around?
Replies: 24
Views: 4396

Re: Am I getting the run around?

That said, my spouse's 401(k) plan changes next month to have superb fund offerings, so that she will not need to use the SDBA anymore. It is be interesting to see how much pain is involved in unwinding that account. When spouse made a draining transfer from Fido BrokerageLink account to the regula...