Bogleheads.org

A reporter at a national newspaper would like to hear from investors who strategize to qualify for the 0% tax rate on capital gains and most dividends. Deadline: Monday March 27 EOD. email: Laura.Saunders@wsj.com.

zero_coupon wrote: ↑Tue Mar 21, 2023 4:25 am

Mel Lindauer wrote: ↑Sun Mar 19, 2023 2:58 pm

zero_coupon wrote: ↑Sun Mar 19, 2023 3:40 am

Mel Lindauer wrote: ↑Sun Mar 19, 2023 1:23 am However, despite the fact that Mid-Caps had been very good to me, once I had attained "more than enough", I reduced the equity portion of my portfolio and opted to move the reduced equity portion to Vanguard's Index 500 fund, which is now my sole equity holding.

So much for "stay the course," ha ha.

When you finally reach shore after rowing in turbulent waters, do you continue to row or do you start walking?

Indeed...just giving you a hard time (hoped to convey this via "ha ha," but fell flat). Best regards.

No problem, but thanks for clarifying your intentions anyway. (I'm walking now since I reached the shore some time ago.)

Actually, every CD that I purchased through my Vanguard Brokerage Account shows "FDIC Insured" followed by the bank's FDIC registration number. I would imagine that other brokerages would have something similar if you look for it.

You will get a variety of opinions (or you can find them on tax software threads here) on how to enter data. Livesoft says import. I have never imported. I always type in manually. I think you need to check each entry carefully either way. FWIW, I've been importing my Vanguard info into TurboTax for years and haven't had any problems. It makes things so much easier and correct vs typing the info in and wondering if you got it right. And it also avoids questions such as the OP has. Logging in is via a unique code that Vanguard provides you, so that adds a level of safety and privacy. The issue is that I have had problems with importing data into various computer programs and I have therefore stopped doing it. I'm fine with your doing it, ho...

Geologist wrote: ↑Mon Mar 20, 2023 5:12 pm You will get a variety of opinions (or you can find them on tax software threads here) on how to enter data. Livesoft says import. I have never imported. I always type in manually.

I think you need to check each entry carefully either way.

FWIW, I've been importing my Vanguard info into TurboTax for years and haven't had any problems. It makes things so much easier and correct vs typing the info in and wondering if you got it right. And it also avoids questions such as the OP has.

Logging in is via a unique code that Vanguard provides you, so that adds a level of safety and privacy.

Geologist wrote: ↑Mon Mar 20, 2023 5:12 pm You will get a variety of opinions (or you can find them on tax software threads here) on how to enter data. Livesoft says import. I have never imported. I always type in manually.

I think you need to check each entry carefully either way.

FWIW, I've been importing my Vanguard info into TurboTax for years and haven't had any problems. It makes things so much easier and correct vs typing the info in and wondering if you got it right. And it also avoids questions such as the OP has.

Thank you Stinky Its a variable annuity No surrender charges, I have held it long enough. He told me he wanted to put the fund into the brokerage account. Unless I miss understood him. Yes. The advisor even though a fiduciary is still human and needs to look out for their own pocket. And I do question his "in your best interest" With that information, let me give you a few comments: --- If you surrender the variable annuity, you'll save the fees. Many variable annuities have base fees of roughly 1%, PLUS fees of roughly 1% on mutual funds that could purchased outside of the VA for almost zero fees, PLUS rider fees (if any). So you could be saving that 2% (or more) annual fee. --- Do you feel comfortable managing the investments y...

I don't think the fixed rate is going up. TIPS real yields are much lower than they were a few months ago. We'll see! I have no room for more purchases until next year, anyway, so I'll be watching from the sidelines. I think they use the 6 months average of the TIPs rate to determine the fixed rate. That was <0.75% in November, for a fixed rate of 0.4%. Right now the average fixed rate >1.25%. So the estimate of fixed rate of 0.6%-1.0% of tipswatch is very reasonable. I would be surprised if the fixed rate is less than 0.8%. https://www.cnbc.com/quotes/US10YTIP Question about taxes. It is my understanding, that there is no need to pay taxes if the money goes towards educational expenses. If we sell old I Bonds to buy new I Bonds, are they ...

zero_coupon wrote: ↑Sun Mar 19, 2023 3:40 am

Mel Lindauer wrote: ↑Sun Mar 19, 2023 1:23 am However, despite the fact that Mid-Caps had been very good to me, once I had attained "more than enough", I reduced the equity portion of my portfolio and opted to move the reduced equity portion to Vanguard's Index 500 fund, which is now my sole equity holding.

So much for "stay the course," ha ha.

When you finally reach shore after rowing in turbulent waters, do you continue to row or do you start walking?

AlohaBill wrote: ↑Sun Mar 19, 2023 12:10 am Where’s Mel?
Better ask him.

For many years, as many of the Bogleheads know, I was 100% mid-caps for the equity portion of my portfolio. I wrote and posted about them so much that they became known as "Mel's Unloved Mid-Caps".

However, despite the fact that Mid-Caps had been very good to me, once I had attained "more than enough", I reduced the equity portion of my portfolio and opted to move the reduced equity portion to Vanguard's Index 500 fund, which is now my sole equity holding.

Do you think that perhaps the reason they're down now is that I haven't been writing about them lately?

To each his/her own. Whatever works for you. Couldn't agree more! And thanks for everything you've done, especially helping turn so many of us on to I Bonds! 4. I wonder why, when folks get paper I Bonds from their tax returns, many (most) seem to feel the need to immediately send them off to TD to be added to their electronic bonds. I think that holding on to those paper I Bonds offers a lot of security and flexibility for when money is needed immediately in an emergency and TD is down for maintenance or other reasons, or they are locked out for some silly reason, such as hitting the backspace key. In a word, simplicity . But I'll come back to that... For many of us $5k isn't adequate. In our case, we are buying $45k of I Bonds annually (...

That's simply a risk I'm not willing to take since I already have more than my fair share of high fixed rate I Bonds. That's great that you have no need to buy I bonds going forward! You have clearly done well and amassed what you need in paper bonds. However the people that are trying to evaluate the risk of buying electronic bonds now are not similarly situated. It is not possible for them to buy large amounts of paper bonds. This is a thread about buying I bonds, perhaps there should be a separate one to reminisce about the good old days of I bonds when the fixed rates were high, you could buy $30k worth on your credit card, and those large amounts would be delivered to you in paper form. None of those things apply today. As for the ris...

^^^ While it's probably highly unlikely, that really doesn't matter at all if you happen to be the first and become the poster boy for how it was done. You can't go crying to TD, since you were warned. Somebody's always going to be the first at something. I might get in a car accident. You as well. (heaven forbid on both counts) but I can think a lot of risks I'm taking elsewhere with higher probability than this with significantly more impact. Wouldn't surprise me a bit if this might be the case for you as well. As for me, I'll continue to not lose sleep over this. Cheers (really, cheers!) :D Let's hope that neither you nor anyone else has to be the first. That's simply a risk I'm not willing to take since I already have more than my fair...

^^^ While it's probably highly unlikely, that really doesn't matter at all if you happen to be the first and become the poster boy for how it was done. You can't go crying to TD, since you were warned.

That's true that not everyone wants electronic savings bonds. In addition to the joint ownership mentioned by HueyLD above, paper bonds offer additional benefits: 1. You don't have to deal with TD which is a benefit for some folks. 2. Paper bonds can be redeemed at many local banks and the money is available immediately. 3. If paper bonds are lost, stolen, or even fraudulently redeemed, you will be made whole by Treasury. 4. On the other hand, if your online TD account gets hacked and cleaned out, it's on you. TD will not make you whole. That's a huge red flag for me. 5. While your heirs can find paper bonds, they may not know about TD since TD doesn't send any statements like most financial institutions do for your heirs to find. 6. And, ...

Not everyone wants electronic savings bonds. There are still those who prefer paper I bonds because paper ones allow joint ownership, meaning that one joint owner can redeem the bonds without the consent of the other. This comes in handy when one passes away. Electronic savings bonds do not allow joint ownership. Rather, they have primary owner WITH secondary owner and the secondary owner is a de facto beneficiary with no rights to the account except when specifically granted by the primary owner. And upon the demise of the primary owner, the secondary owner has to go through required steps to claim the money, just like a beneficiary. That's true that not everyone wants electronic savings bonds. In addition to the joint ownership mentioned...

I-bonds are real (inflation indexed) bonds so they have no inflation risk. They are also non-marketable bonds (you can only buy and redeem them from the US Treasury) so they also have no interest rate risk. Since they issued by the US Treasury, they have negligible credit risk. The lack of inflation risk, interest rate risk, and credit risk makes I-bonds the safest financial product one can invest in. :D OTOH, because they are so safe, no one gets rich on the basis of investing a lot in I-bonds. :( BobK In fairness we should say they protect from inflation, but only before accounting for potential taxes. They may have some favorable tax treatment depending on how and under what circumstances they're used. Just to expand on the above statem...

FWIW, $1300 sounds like an awful lot. You either need to pay it or else buy the TurboTax Business version that handles K1s and do it yourself. Others have stated that TT handles theirs, so you may want to check that out for next year's return.

Mybuterrier wrote: ↑Wed Mar 15, 2023 7:01 pm Hello Bogleheads ,
My long time financial adviser is retiring and his succession plan is to merge his current clients with another firm that uses the same investor broker /dealer . My wife and I have been doing due diligence interviewing two other advisory firms . Question is it prudent to stay with his succession plan or move funds to a new advisory firm ?
Thanks

He may well be "selling" your account to the highest bidder. I'd say that now is a good time for you to decide where/if you want to move your money, or if you feel capable of handling it yourself and saving the advisory fee.

SVB small business depositor update: as of just now (9:27am ET Monday 3/13) I am able to login to online banking. :happy There are several messages including: "All pending transactions that have not been processed since, and including, Thursday March 9th will not be processed. Clients wishing to process those previously initiated transactions will need to resubmit those requests." "International payment services are currently suspended, while USD wire transfers and Bill Pay within the United States remain available. Wire transfers that were initiated after March 9th, 2023 that have not been marked as completed or sent will need to be initiated again." The international point makes sense because different regulators in d...

Has anyone's TD account been hacked? Not that I'm aware of, but this issue has been discussed: Oh yeah, and TD offers no protections at all if your securities are somehow stolen, and for this reason alone, one of the great savings bond champions on this site, Mel L., won't even buy savings bonds at TD. Point taken. Fidelity for t-bills it is! Or Vanguard brokerage, which is what I use. And another reason for using a brokerage account, even if you're comfortable with TD, is that you can't sell prior to maturity at TD but you can in your brokerage account. Sadly Vanguard does not offer autoroll, which is why I use Fidelity. I have accounts at both. For those who need that feature, Fidelity does have the advantage when it comes to autorolling...

I know people hate Treasury Direct, but if you have too much cash, autorolling T-Bills st Treasury Direct avoids bank and brolerage failure risk. Yeah, but if your money gets stolen you have no recourse. TD offers no guarantee to make you whole. Has anyone's TD account been hacked? Not that I'm aware of, but this issue has been discussed: Oh yeah, and TD offers no protections at all if your securities are somehow stolen, and for this reason alone, one of the great savings bond champions on this site, Mel L., won't even buy savings bonds at TD. Point taken. Fidelity for t-bills it is! Or Vanguard brokerage, which is what I use. And another reason for using a brokerage account, even if you're comfortable with TD, is that you can't sell prior...

One thing that isn't mentioned very often when comparing TIPS vs I Bonds is that the I Bonds are tax-deferred for up to 30 years and thus increase one's tax-deferred space, while the TIPS aren't, unless put in a tax-deferred account, thereby using up valuable tax-deferred space.

On the other hand, unless Treasury increases the fixed rate on new I Bonds, lots of folks will choose the current TIPS for its better real rate and deal with the issue of where to put them.

When all else fails and you can't get insurance at a reasonable rate, there's always the state-backed Citizens Insurance. Is the state - backed Citizens Insurance a reasonable rate? I know in Louisiana it isn't. In some areas of LA, the Citizens premium in 2022 was @24.76 per $1,000 of coverage...and that was BEFORE a 60-80% rate increase for 2023. My previous annual coverage was $6600 and I'm getting reports that that company is raising rates by as much as 30-40% at renewal time because of the two hurricanes we experienced last year. That meant I might be looking at possibly $8500-9000. I started shopping around early and just got coverage from Citizens for $3900. I then canceled the $6600 policy and got a refund for the remaining couple ...

When all else fails and you can't get insurance at a reasonable rate, there's always the state-backed Citizens Insurance.

There's still time to respond if you fit the profile.

Looks like the IRS has really got its act together. My turbo tax e-filed refund showed up in my bank acct. in less than two weeks. For comparison, it took more than a year to get my refund for an amended 2020 tax return. Kudos for the improved service!

Ran for years but tore a meniscus in a racketball tournament and then started walking after surgery for that. I walk across the street to the beach and do three to five miles every day. If I'm alone, I daydream and let my mind wander wherever it wants to go. In fact, when I'm writing a book, a product review, or a magazine column, I get some of my best ideas while walking alone on the beach. And, when I'm walking with friends, we chat and solve all the problems of the world, and time flies. Since I live in Florida, I can walk just about every day of the year (with the exception of the occasional hurricane). In the summer heat, I'll walk the beach in the late evening (the oceanfront condos light up the beach, so it's easy to see at night). A...

One thing I haven't seen mentioned but that's super important to me is having an account at a bank that is willing to redeem paper Savings Bonds, which keeps me from having to deal with Treasury Direct.

I bank with two local brick-and-mortar banks that both will redeem paper I Bonds as long as you've had the account for at least one year. One of the two banks is within walking distance from my house and the other one is about a 15-minute drive. (I keep accounts at the two banks, just in case one of them later decides they'll no longer redeem Savings Bonds.) Something to keep in mind if you own paper Savings Bonds, or plan to own them via your tax refund and don't want to have to ship them off to TD.

The idea of locking up any significant t amount of money for 20 y for 3.5 percent just makes me nauseous. Or yes I can pull it out at any time but ROI goes to almost zero. I guess it would be like put half in the market and hold half as cash. You get the same benefits and same ROI. For me that approach doesn’t make sense. If you need the money in under ten years it shouldn’t be in equities. If you need the money in twenty years it shouldn’t be in bonds it should be in equities. All depends on perspective... If someone is choosing between contributing $10k to EE Bonds or their tax-advantaged accounts, that's a no brainer - tax-advantaged accounts come first! We've worked and saved hard, living below our means, and growing our careers/income...

DavidScottish wrote: ↑Mon Mar 06, 2023 1:18 pm Hi, I have been following a kind of "boglehead" approach to investing for the last few years. Still new to the game, but I have just moved to Vancouver from the UK and starting all over again with figuring out the best resources. I know the original post is from a while ago, but did a Vancouver chapter ever emerge?

If there are five or more Bogleheads who are interested in getting a Vancouver Local Chapters up and running, and one of you is willing to be the Local Chapter Coordinator, then let me know via PM and I'll make your group official and list it along with all of the other Local Chapters so others can find and contact you.

A reporter with a national publication would like to hear from Bogleheads who have taken unusual but legal tax deductions for medical expenses. Deadline: March 13, EOD. Write to Laura.Saunders@wsj.com

No, no, no, no, no! Laura Dogu is the queen of the Bogleheads. And always will be. But you can call me...well...not sure what that should be. The old hag, perhaps? :wink: Yes, it's true that Laura Dogu is the Queen of the Bogleheads. Jack Bogle crowned Taylor "The King of the Bogleheads" and me "The Prince of the Bogleheads". Taylor and I realized that we didn't have a queen, so we "anointed" Laura, who was such a great contributor to the success of the forums, as "Queen of the Bogleheads". That "coronation" took place at one of our earlier Conferences (I think it was #5 in DC). Laura, a career State Department diplomat, later became U. S. Ambassador to Nicaragua and had to stop working wit...

evelynmanley wrote: ↑Thu Mar 02, 2023 10:41 am

bikechuck wrote: ↑Thu Mar 02, 2023 10:03 am

aristotelian wrote: ↑Thu Mar 02, 2023 6:19 am Money is fungible. I Bonds are an inflation protected cash equivalent that can be used for any purpose. They can be used tax free for education.

Sadly I do not think that the education use extends to grandchildren.

They can be used for grandchildren:

Cash Out I Bonds Tax Free For College Expenses Or 529 Plan
https://thefinancebuff.com/cash-out-i-b ... -plan.html

Just so there's no confusion, ordinarily, Savings Bonds cannot be used by a grandparent to directly fund a 529 for a non-dependent grandchild. Be sure to read the workaround in the link provided above to see how it may be possible. Not sure if the step doctrine might come into play here, though. That's for others to decide.

I’m 41 and aim to retire around 60. I have a portfolio with equities and muni funds in my taxable account, equities in a Roth, and a little equities and a bond index in my 401k. AA is 69/31. The last couple years I invested some in iBonds for inflation protection rather than keeping the money in a high yield online savings. I’m in NYC and pay federal state and city tax on ordinary income. Considering TIPS rates are higher than iBonds now, I’m considering investing in them instead of iBonds. From a tax efficiency standpoint, would this make sense for me? I read with TIPS I’d have to pay federal income tax. I expect to be in the 32% bracket in 2023. If TIPS makes sense, am I better off investing in a TIPS mutual fund in my taxable account or...

Taylor Larimore wrote: ↑Sat Feb 25, 2023 4:51 pm

Special thanks to Taylor, Mel, Snowbog, Nisiprius and the mods as well as everyone who commented on my threads or contacted me by PM.

Annette:

I am proud of you.

Taylor

Jack Bogle's Words of Wisdom: “Your success in investing will depend in part on your character and guts, and in part on your ability at the height of ebullience and the depth of despair alike that this too shall pass.”

Hearing success stories like yours makes our work feel worthwhile, Annette. Thanks so much for sharing it with us. Wishing you continued success on your journey to financial freedom.

tenkuky wrote: ↑Thu Feb 23, 2023 6:19 pm Will be visiting Salt Lake City next month.
Will rent a car to do a round trip (same day or 1-overnight) to a nearby national park.
Which would be a better plan: go east to Dinosaur Monument (3 1/2 hours) or southeast to Arches or Canyonlands (4 1/4 hours)?
Will leave in AM and either return same night or stay overnight half-way between.
Have 2 other days in SLC to do the Great Salt Lake and explore the city itself.

I know, I know, "post this on Tripadvisor" but I trust this board more for the brutal truth

Thanks!

I've done (and enjoyed) them all. However, if I could only pick one, I'd choose Arches. Simply awesome!

Lawrence of Suburbia wrote: ↑Sat Feb 18, 2023 1:30 pm When will this piece be published? That's pretty much my situation ...

Contact the WSJ reporter for more info if you'd like to be in the article.

Reporters at The Wall Street Journal are looking for people who are retired from their careers who would be willing to be profiled for an article that will explore what an approximately $500,000 retirement looks like in various parts of the country. The best fits for the article are people willing to see their names and photographs in the paper who either have about $500,000 in savings, (not including home equity) – or they might have less in savings but also have a pension. We are looking for people who would be willing to share their budgets, including how much they spend on items including groceries, housing, utilities, gas, and hobbies. The article will also focus on how they spend their time and the activities they enjoy most. The arti...

pascalwager wrote: ↑Mon Feb 13, 2023 2:55 pm Not seeing my sub-account values posted for last few days. Anyone else?

Based on previous experience with TA, I've been concerned that they would drop online access once the non-annuitized customer size got smaller. Then you've got to call in to get account values.

They announced via phone that their website was "experiencing problems and that they were working on fixing them". The site is finally back up and running.

You got a lot of good responses, telling you to avoid any advisor with those products with such high fees. You may also want to do a google search for "Raymond James Financial violations" and see what kind of issues you might want to be aware of.

Investing doesn't have to be complicated. As someone already suggested, you could pay a small fee to get a PAS advisor at Vanguard. Or, you could, as was also suggested above, simply put your funds in the appropriate Vanguard Life Strategy or Target Date Fund and set it and forget it. Doesn't get any simpler than that.

Our HOA documents require it and yours may, too. It's apparently to protect the community if an insured simply chooses to walk away after some catastrophe or is not capable of getting satisfaction from the insurance company on an issue. Might also be desirable for the community if the insured died with an insured issue outstanding. Or if the resident simply stopped paying for the required insurance, the HOA would be notified.

IANAL, so you should check to see if it's in your documents and if it's legal in your state. I suspect it is.

I think I’ll attend this year but not let on that I’m Annette. I couldn’t make last year’s conference due to a conflict but this year should be ok plus DC is more convenient for me. Looking forward! We already know what you look like. (Hint: You posted your picture in your profile! :oops: ) If I attend a Bogleheads conference, eager to protect my anonymity, I'll be the one with the Groucho Marx nose and glasses. Since you just gave away your disguise, we'll know it's you! 🤗 May I suggest a special table for market timers, current, part time and reformed? We know who we are. If I let on, I’ll be signing autographs all day and that gets tiresome. I used to include an autograph session on the Agenda in the previous Conferences, Annette. :)

nedsaid wrote: ↑Sun Feb 12, 2023 2:26 pm

Mel Lindauer wrote: ↑Sun Feb 12, 2023 1:04 pm

AnnetteLouisan wrote: ↑Sun Feb 12, 2023 1:00 pm I think I’ll attend this year but not let on that I’m Annette. I couldn’t make last year’s conference due to a conflict but this year should be ok plus DC is more convenient for me. Looking forward!

We already know what you look like. (Hint: You posted your picture in your profile! )

If I attend a Bogleheads conference, eager to protect my anonymity, I'll be the one with the Groucho Marx nose and glasses.

Since you just gave away your disguise, we'll know it's you!

AnnetteLouisan wrote: ↑Sun Feb 12, 2023 1:05 pm

Mel Lindauer wrote: ↑Sun Feb 12, 2023 1:04 pm

AnnetteLouisan wrote: ↑Sun Feb 12, 2023 1:00 pm I think I’ll attend this year but not let on that I’m Annette. I couldn’t make last year’s conference due to a conflict but this year should be ok plus DC is more convenient for me. Looking forward!

We all know what you look like, so it's no secret. (Hint: You posted your picture in your profile! )

Pretty sure Annette Funicello has left the building, Mel…

But not to worry, you are far from the only one who didn’t recognize the actress’s image.

I was just pulling your chain, Annette. I'm old enough to recognize her.

AnnetteLouisan wrote: ↑Sun Feb 12, 2023 1:00 pm I think I’ll attend this year but not let on that I’m Annette. I couldn’t make last year’s conference due to a conflict but this year should be ok plus DC is more convenient for me. Looking forward!

We already know what you look like. (Hint: You posted your picture in your profile! )

Laura Saunders, a reporter at a national publication, would like to hear from Bogleheads who have benefited from using the "Married Filing Separately" tax-filing status. Pls. write to Laura.Saunders@wsj.com.

Or you could simply have the maturing Treasury funds accumulate in your Vanguard Transaction account which is currently yielding around the same as the short-term Treasuries.

At 40 years old I finally have full control of all of my financial accounts. I moved my Brokerage and an inherited IRA account away from an insurance company with high fees. I surrendered an annuity and put the money to work in the market. I canceled the "guided portfolio services" for my and my wife's 403b which had a whopping 19 different funds with high expense ratios. Finally, I adjusted all my investments to have a much simpler 3 fund portfolio approach. It is a great feeling knowing I am in control of my own money and I can save on fees wherever possible. I never would have felt comfortable doing this without the Bogleheads community and I just want to say thank you for being such an awesome and encouraging forum that in an...

VUSXX, the treasury money market account, is definitely not free of federal tax. It is not. The reason why the money market fund is earning so much interest compared to the longer-term funds is because of the inverted yield curve. So for right now, the short-term rates are very attractive compared to the longer term rates. How long that will be is anyone's guess. As this year has shown, NAVs can move a little faster than you'd expect but they can go both ways. For the money that you'll need over the next year or two, stay in the money market. For the money you'll need several years from now, you'll still want a longer duration fund and reinvest the dividends as much as you can. When you're in your 70s, it's perfectly fine to have funds tha...