Search found 1603 matches

by FinancialDave
Thu Jan 17, 2019 3:05 pm
Forum: Investing - Theory, News & General
Topic: Tributes to Jack Bogle
Replies: 118
Views: 10269

Re: ode to St. Jack

I also have two treasured notes from Jack on the inside page of two of his books. Both reference his famous quote "Stay the Course!" His impact on the investing world from the Vanguard Index Fund to all his books and thoughts on investing has certainly impacted my life as well as millions of others....
by FinancialDave
Tue Jan 15, 2019 7:50 pm
Forum: Investing - Theory, News & General
Topic: Vanguard Roth Tax Accounts Distribution Code Errors
Replies: 16
Views: 614

Re: Vanguard Roth Tax Accounts Distribution Code Errors

Dave, You're making a mountain out of a molehile. This is not a big deal and it is not the custodian's responsibility to verify everything. They are just using the generic code. So what? Can you imagine a taxpayer's problem who has been sitting in a waiting room for 3 hours to have me do their taxe...
by FinancialDave
Tue Jan 15, 2019 7:06 pm
Forum: Investing - Theory, News & General
Topic: Vanguard Roth Tax Accounts Distribution Code Errors
Replies: 16
Views: 614

Re: Vanguard Roth Tax Accounts Distribution Code Errors

Mark, I agree with you, but this is not about that. It's just alerting people that there are ACTUAL errors in the reporting and don't waste your time trying to get this particular one fixed - Not that one in 50 would ever know they have it. What you are talking about are not errors, they are just ca...
by FinancialDave
Tue Jan 15, 2019 5:22 pm
Forum: Investing - Theory, News & General
Topic: Vanguard Roth Tax Accounts Distribution Code Errors
Replies: 16
Views: 614

Re: Vanguard Roth Tax Accounts Distribution Code Errors

Does Vanguard know your age from some verification process or do they simply know what your told them? I can't recall ever giving any proof of my birth date or any similar information to VG (I don't even know if I told them my birth date when I started with them - it was a long time ago). How would...
by FinancialDave
Tue Jan 15, 2019 5:17 pm
Forum: Investing - Theory, News & General
Topic: Vanguard Roth Tax Accounts Distribution Code Errors
Replies: 16
Views: 614

Re: Vanguard Roth Tax Accounts Distribution Code Errors

Does Vanguard know your age from some verification process or do they simply know what your told them? I can't recall ever giving any proof of my birth date or any similar information to VG (I don't even know if I told them my birth date when I started with them - it was a long time ago). No the gu...
by FinancialDave
Tue Jan 15, 2019 5:12 pm
Forum: Investing - Theory, News & General
Topic: Vanguard Roth Tax Accounts Distribution Code Errors
Replies: 16
Views: 614

Re: Vanguard Roth Tax Accounts Distribution Code Errors

Don’t think this is just a VG issue. I do a lot of volunteer tax returns with AARP and see this routinely (code J or T instead of Q). This year AARP even added some training words on how to handle. Basically it says work through the flow chart with the taxpayer to determine if qualified and then ha...
by FinancialDave
Tue Jan 15, 2019 5:01 pm
Forum: Investing - Theory, News & General
Topic: Vanguard Roth Tax Accounts Distribution Code Errors
Replies: 16
Views: 614

Re: Vanguard Roth Tax Accounts Distribution Code Errors

I think the same thing holds true on (Box 11) of 1099-R 1st year of designated Roth contribution. Always unmarked in my yearly conversions. They have no way of knowing the answer to that question and how many other Roth accounts you have. In other words you can't expect them to keep proper "orderin...
by FinancialDave
Tue Jan 15, 2019 4:58 pm
Forum: Investing - Theory, News & General
Topic: Vanguard Roth Tax Accounts Distribution Code Errors
Replies: 16
Views: 614

Re: Vanguard Roth Tax Accounts Distribution Code Errors

In general it's pointless to argue with brokers over 1099-R codes. Because you can have IRAs at multiple brokers it's tough for any one broker to know whether an exception applies in your specific case, so they usually take the conservative route and let you handle it on your taxes. You're right th...
by FinancialDave
Tue Jan 15, 2019 4:02 pm
Forum: Investing - Theory, News & General
Topic: Vanguard Roth Tax Accounts Distribution Code Errors
Replies: 16
Views: 614

Vanguard Roth Tax Accounts Distribution Code Errors

As it turns out after spending quite some time on the phone with Vanguard as to why my Roth 1099-R was coded with a Code T instead of a Q, I am not the only one with this problem, but the short answer is no matter how hard you try you are probably not going to get them to correct this error. So don'...
by FinancialDave
Fri Jan 11, 2019 5:24 pm
Forum: Investing - Theory, News & General
Topic: 2019 Hedge Fund Contest
Replies: 145
Views: 6740

Re: 2019 Hedge Fund Contest

Ok, fair enough.

No limit on the upside - except for short stocks 100%.

No limit on the downside - except for long stocks 100%.

Only tempered by your ability to "close" down a position at any time, which must be done before market close if you want that days price.


Sound about right?
by FinancialDave
Fri Jan 11, 2019 2:04 pm
Forum: Investing - Theory, News & General
Topic: 2019 Hedge Fund Contest
Replies: 145
Views: 6740

Re: 2019 Hedge Fund Contest

Again, I meant to get this up earlier, but this is the thread for the 2019 hedge fund contest. You can find the previous year's contest (2018) here: viewtopic.php?f=10&t=236514 If a stock is taken out in a merger or a bankruptcy during 2019, we will do our best to do the right thing. An all cash of...
by FinancialDave
Tue Jan 08, 2019 11:11 am
Forum: Investing - Theory, News & General
Topic: 2019 Hedge Fund Contest
Replies: 145
Views: 6740

Re: 2019 Hedge Fund Contest

FinancialDave wrote:
Fri Jan 04, 2019 10:45 pm
Blue Contrarian Fund

LONG:

JCP
Tanelorn,

Blue Contrarian Fund does not believe in the limited upside to short funds.

Please correct my entry as it looks bad starting out exactly where I finished last year :oops:
by FinancialDave
Fri Jan 04, 2019 10:45 pm
Forum: Investing - Theory, News & General
Topic: 2019 Hedge Fund Contest
Replies: 145
Views: 6740

Re: 2019 Hedge Fund Contest

Blue Contrarian Fund

LONG:

JCP
by FinancialDave
Thu Jan 03, 2019 1:12 pm
Forum: Investing - Theory, News & General
Topic: What do you think of this advice?
Replies: 62
Views: 4224

Re: What do you think of this advice?

l1am wrote:
Wed Jan 02, 2019 8:15 pm
What should I do during a stock market crash?

Did not read the link because the correct answer is:

Go for a long walk 3 times a week --- that will be better for you than anything to do with "playing" with your investments.


Dave
by FinancialDave
Wed Jan 02, 2019 5:06 pm
Forum: Investing - Theory, News & General
Topic: Is it ok to hold some of the same mutual funds in Roth IRA as in taxable accounts?
Replies: 13
Views: 1223

Re: Is it ok to hold some of the same mutual funds in Roth IRA as in taxable accounts?

You can't sell a fund in your taxable and buy the same exact fund in Roth within 30 days without it being a wash-sale. If you have "reinvestment" set up in Roth for any dividends you may end up doing this without realizing it. Provided you aren't doing auto-reinvestments you can easily manage this ...
by FinancialDave
Sat Dec 08, 2018 2:56 pm
Forum: Personal Finance (Not Investing)
Topic: Roth Conversions
Replies: 12
Views: 862

Re: Roth Conversions

Hello BHs - I am about 1 year from retiring (at age 58) and I am starting to plan how I will tap my various assets so as to maximize my after tax cash flow consistent with my cash flow needs and I have a question around Roth Conversions. My RMD would be about $75,000 at age 70 1/2 with my current r...
by FinancialDave
Thu Dec 06, 2018 12:25 pm
Forum: Personal Finance (Not Investing)
Topic: Reuqesting Help With Managing of Winnings
Replies: 37
Views: 3755

Re: Reuqesting Help With Managing of Winnings

You may have checked this info, but if not, this may be helpful: https://fantasyfootballers.org/law/tax-considerations-for-fantasy-sports-players/ BE CAREFUL with what is said on this page which is NOT IRS advice. It is in fact advice from the fox as to where the chickens should live! This is just ...
by FinancialDave
Wed Dec 05, 2018 1:49 pm
Forum: Personal Finance (Not Investing)
Topic: Reuqesting Help With Managing of Winnings
Replies: 37
Views: 3755

Re: Reuqesting Help With Managing of Winnings

I have to back peddle a bit since it appears these fantasy sites don't exactly report like a casino. In this case it appears to be Net Winnings on a 1099-MISC that will end up on line 21. If that is true then I don't see any itemized deductions showing up for losses as they have already been account...
by FinancialDave
Wed Dec 05, 2018 1:05 pm
Forum: Personal Finance (Not Investing)
Topic: Reuqesting Help With Managing of Winnings
Replies: 37
Views: 3755

Re: Reuqesting Help With Managing of Winnings

From what I gather from online searches including a few links posted in this forum, it is Winnings = All Winnings - Total Entry Fees which would be a significant tax difference compared to All Winnings. All winnings doesn't make sense as no one would play because nearly every person that plays woul...
by FinancialDave
Wed Dec 05, 2018 11:59 am
Forum: Personal Finance (Not Investing)
Topic: Reuqesting Help With Managing of Winnings
Replies: 37
Views: 3755

Re: Reuqesting Help With Managing of Winnings

One other question. I just had an accountant tell me that since I would be making such a large payment to the IRS now for 2018, that they may charge me interest because I did not make those payments through the course of the year. I obviously did not know I would need to make those payments until r...
by FinancialDave
Wed Dec 05, 2018 11:53 am
Forum: Personal Finance (Not Investing)
Topic: Reuqesting Help With Managing of Winnings
Replies: 37
Views: 3755

Re: Reuqesting Help With Managing of Winnings

One other question. I just had an accountant tell me that since I would be making such a large payment to the IRS now for 2018, that they may charge me interest because I did not make those payments through the course of the year. I obviously did not know I would need to make those payments until r...
by FinancialDave
Tue Dec 04, 2018 5:31 pm
Forum: Personal Finance (Not Investing)
Topic: IRMAA Avoidance Strategies
Replies: 20
Views: 1760

Re: IRMAA Avoidance Strategies

Repositioning to low dividend stock funds doesn't seem very practical. Most people by the time they are 2 yrs from Medicare, in the recent period of good stock market, have big capital gains in existing funds in taxable that would make it prohibitive to sell stock funds just to reduce current incom...
by FinancialDave
Tue Dec 04, 2018 2:13 pm
Forum: Personal Finance (Not Investing)
Topic: IRMAA Avoidance Strategies
Replies: 20
Views: 1760

Re: IRMAA Avoidance Strategies

As a number of posters have mentioned there is a range of possibilities that you should be able to see where you should avoid worrying about the IRMAA and just save the thousands in taxes, but the point of this excercise is to show if you focus on just "living off the income" you won't likely do ei...
by FinancialDave
Tue Dec 04, 2018 12:20 pm
Forum: Personal Finance (Not Investing)
Topic: IRMAA Avoidance Strategies
Replies: 20
Views: 1760

Re: IRMAA Avoidance Strategies

Total return is the yardstick of really what will happen to your portfolio, but total return comes in all forms of "income" + "capital appreciation" and LTCG affects your AGI differently than income (in the form of interest or dividends). Dave I guess I get what you are saying, but let me try to re...
by FinancialDave
Tue Dec 04, 2018 11:05 am
Forum: Personal Finance (Not Investing)
Topic: IRMAA Avoidance Strategies
Replies: 20
Views: 1760

Re: IRMAA Avoidance Strategies

andypanda wrote:
Mon Dec 03, 2018 6:23 pm
I made a lot of money in 2017. I just received my notice that my Medicare premium will be $428-whatever per month during 2019.

I did the only thing I could do... I got married last month. :sharebeer
Congrats on that!

:sharebeer
by FinancialDave
Mon Dec 03, 2018 4:58 pm
Forum: Personal Finance (Not Investing)
Topic: IRMAA Avoidance Strategies
Replies: 20
Views: 1760

Re: IRMAA Avoidance Strategies

strategies that possibly produce less taxable income in retirement for the same investment risk. Let me take the second question first as it's easier. And I didn't get the comment about those who "live off dividends". Are you saying that instead of VTI they probably would be invested in dividend fo...
by FinancialDave
Mon Dec 03, 2018 1:24 pm
Forum: Personal Finance (Not Investing)
Topic: Rent v. buy in NYC
Replies: 34
Views: 3638

Re: Rent v. buy in NYC

I agree. Rent is not "throwing money away" completely. Buying is not either "saving and investing money for long term" always. You can use this calculator to decide what works best for you: https://www.nytimes.com/interactive/2014/upshot/buy-rent-calculator.html Keep in mind that these calculators ...
by FinancialDave
Mon Dec 03, 2018 12:55 pm
Forum: Personal Finance (Not Investing)
Topic: IRMAA Avoidance Strategies
Replies: 20
Views: 1760

IRMAA Avoidance Strategies

I see a number of articles such as this one for people trying to avoid the IRMAA cliff in any particular year: https://www.bogleheads.org/forum/viewtopic.php?t=252912 I see little on strategies that would reduce the IRMAA permanently. Now I'm not talking about buying "losers" in a portfolio just to ...
by FinancialDave
Mon Nov 05, 2018 11:40 am
Forum: Investing - Theory, News & General
Topic: Do people calculate savings rate on gross income?
Replies: 118
Views: 7548

Re: Do people calculate savings rate on gross income?

gross makes more sense. too many variables that change you to net. Agree, biggest variable being 401k tax-deferred deductions wouldn't even show up on the radar. Also when you make a 401k deduction selection it is usually expressed in a percentage of your GROSS salary. Pretty simple math. Dave
by FinancialDave
Sat Nov 03, 2018 2:44 pm
Forum: Investing - Theory, News & General
Topic: Dangers of VTSAX? (Unrealized Appreciation)
Replies: 26
Views: 4788

Re: Dangers of VTSAX? (Unrealized Appreciation)

Going from a hazy memory here..I think it was around the year 2000 when Fidelity Magellan had huge capital gains distributions. Seems like it was around $25/shr or perhaps 25%/ shr. So I poked around with google and was unable to substantiate this but found something more shocking...94% for another...
by FinancialDave
Fri Nov 02, 2018 2:11 pm
Forum: Investing - Theory, News & General
Topic: Dangers of VTSAX? (Unrealized Appreciation)
Replies: 26
Views: 4788

Re: Dangers of VTSAX? (Unrealized Appreciation)

Silverado, What if I (little individual investor) come and buy $50,000 worth at the same time. I am buy and hold. Wouldn't those realized gains caused by the big investors selling then also have to be distributed to me? I don't understand why they would as all the "realized gains" have been distribu...
by FinancialDave
Fri Nov 02, 2018 2:48 am
Forum: Investing - Theory, News & General
Topic: Dangers of VTSAX? (Unrealized Appreciation)
Replies: 26
Views: 4788

Re: Dangers of VTSAX? (Unrealized Appreciation)

David, This is not correct. The fund must sell $1B in stocks, causing some of the gain to be realized; the remaining investor would pay tax on the realized gain. It probably wouldn't be half the value since stocks had been bought at different prices. I'm not sure we are communicating. Let me make th...
by FinancialDave
Thu Nov 01, 2018 12:50 pm
Forum: Investing - Theory, News & General
Topic: Dangers of VTSAX? (Unrealized Appreciation)
Replies: 26
Views: 4788

Re: Dangers of VTSAX? (Unrealized Appreciation)

Another puzzliing comment comes from the WSJ article you link in which they claim that mutual fund companies are forced by law to distribute the majority of any capital gains following directly the year in which they were generated. So once again where does this 40% number come from. Certainly the ...
by FinancialDave
Wed Oct 31, 2018 8:04 pm
Forum: Investing - Theory, News & General
Topic: Dangers of VTSAX? (Unrealized Appreciation)
Replies: 26
Views: 4788

Re: Dangers of VTSAX? (Unrealized Appreciation)

(Disclaimer: I am not attacking VTSAX. It is a wonderful fund that I personally own. I am simply seeking to understand.) Does anyone else think about the possibility of a major capital gains distribution from the unrealized appreciation in VTSAX (or other Vanguard index funds)? According Vanguard's...
by FinancialDave
Tue Jul 31, 2018 1:15 pm
Forum: Investing - Theory, News & General
Topic: Vanguard Paper on Roth Conversion Analysis
Replies: 123
Views: 9972

Re: Vanguard Paper on Roth Conversion Analysis

My intention in that example was to illustrate the potential benefits for a current-year withdrawal need, no more. In that case, flexibility and tax bracket have a very limited context -- and historical tax brackets don't apply anymore. Extremely rough numbers, with the classic $40K withdrawal from...
by FinancialDave
Tue Jul 31, 2018 11:30 am
Forum: Investing - Theory, News & General
Topic: Vanguard Paper on Roth Conversion Analysis
Replies: 123
Views: 9972

Re: Vanguard Paper on Roth Conversion Analysis

The problem is you aren't comparing apples to apples. My assumption was you wanted to compare leaving the money in the IRA to converting it to a Roth and letting it grow there. If your only solution is you have to pull it out vs convert it to Roth then yes, taxable will tie or be slightly less than...
by FinancialDave
Mon Jul 30, 2018 6:26 pm
Forum: Investing - Theory, News & General
Topic: Vanguard Paper on Roth Conversion Analysis
Replies: 123
Views: 9972

Re: Vanguard Paper on Roth Conversion Analysis

I think I must be missing something here, because unless you are assuming some different tax rates for conversion vs withdrawal, you will not gain a nickel or lose a nickel on your idea. This is the most basic of concepts -- "flat tax" with no deductions makes a Roth completely useless except as an...
by FinancialDave
Mon Jul 30, 2018 12:45 pm
Forum: Investing - Theory, News & General
Topic: Vanguard Paper on Roth Conversion Analysis
Replies: 123
Views: 9972

Re: Vanguard Paper on Roth Conversion Analysis

Any TIRA withdrawal could also be done as a Roth Conversion, followed by a Roth withdrawal. Unless you're withdrawing an entire year's worth of money at one shot (i.e., immediately putting it in a taxable cash account), the conversion will allow tax-free growth, but the TIRA withdrawal will generat...
by FinancialDave
Mon Jul 30, 2018 12:29 pm
Forum: Investing - Theory, News & General
Topic: Vanguard Paper on Roth Conversion Analysis
Replies: 123
Views: 9972

Re: Vanguard Paper on Roth Conversion Analysis

There's an important insight here, but I think Dave is wrong about the past tax cost being relevant. What's important here is analyzing the effect of a withdrawal strategy on the entire tax life cycle of the investor. I totally agree with what you are saying in regard with the aspect that the more ...
by FinancialDave
Sun Jul 29, 2018 2:08 am
Forum: Investing - Theory, News & General
Topic: Vanguard Paper on Roth Conversion Analysis
Replies: 123
Views: 9972

Re: Vanguard Paper on Roth Conversion Analysis

Fivek, I think a lot of people's heads are hurting with all the back and forth and I don't seem to be making much progress as a good communicator. I will say the way I learn most is by doing and as much as you think i-orp some how is going to fail you it may be your next best bet to some hands on le...
by FinancialDave
Sat Jul 28, 2018 4:01 pm
Forum: Investing - Theory, News & General
Topic: Vanguard Paper on Roth Conversion Analysis
Replies: 123
Views: 9972

Re: Vanguard Paper on Roth Conversion Analysis

The independent variables...are...: 1. Roth balance (tax-free dollars) 2. IRA Balance (pre-tax dollars) If those are truly independent variables, what model constraints prevent one from choosing - 100% Roth - as large a balance as one desires? For a pure retirement calculation - "nothing at all." Y...
by FinancialDave
Sat Jul 28, 2018 3:23 pm
Forum: Investing - Theory, News & General
Topic: Vanguard Paper on Roth Conversion Analysis
Replies: 123
Views: 9972

Re: Vanguard Paper on Roth Conversion Analysis

@ trueblue, The above is actually a more thorough discussion of the inputs and outputs taken from my article, but the article tabulates the results for the 9 cases that I mentioned here. Though I haven't tested all 9 cases with i-orp, the few that I have seem to confirm a similar story, but i-orp (o...
by FinancialDave
Sat Jul 28, 2018 12:06 pm
Forum: Investing - Theory, News & General
Topic: Vanguard Paper on Roth Conversion Analysis
Replies: 123
Views: 9972

Re: Vanguard Paper on Roth Conversion Analysis

FiveK, I can assure you no "properties of math" are violated in my spreadsheet. The independent variables to " just " the retirement simulation are the following, just so there is no confusion: 1. Roth balance (tax-free dollars) 2. IRA Balance (pre-tax dollars) 3. Retirement Funds Growth Rate (the s...
by FinancialDave
Fri Jul 27, 2018 2:26 pm
Forum: Investing - Theory, News & General
Topic: Vanguard Paper on Roth Conversion Analysis
Replies: 123
Views: 9972

Re: Vanguard Paper on Roth Conversion Analysis

But not if, for example, instead of "for $1 million saved pre-tax is 97.5% in the tIRA" there is only 50% in the tIRA. In the three cases I studied - 12%, 18%, & 25%, the only one where the Roth wins is when the average tax cost of the Roth was 12% and thus they can survive by going 100% Roth from ...
by FinancialDave
Fri Jul 27, 2018 1:50 pm
Forum: Investing - Theory, News & General
Topic: Vanguard Paper on Roth Conversion Analysis
Replies: 123
Views: 9972

Re: Vanguard Paper on Roth Conversion Analysis

I-orp does not handle SS benefit taxation correctly, if the SS benefits are taxed at less than 85%. Probably not a good idea to use i-orp as justification in areas where it has known deficiencies. It's a "don't care" in all the examples I suggested because the SS will be taxed fully at 85% of its v...
by FinancialDave
Fri Jul 27, 2018 11:37 am
Forum: Investing - Theory, News & General
Topic: Vanguard Paper on Roth Conversion Analysis
Replies: 123
Views: 9972

Re: Vanguard Paper on Roth Conversion Analysis

I-orp does not handle SS benefit taxation correctly, if the SS benefits are taxed at less than 85%. Probably not a good idea to use i-orp as justification in areas where it has known deficiencies. It's a "don't care" in all the examples I suggested because the SS will be taxed fully at 85% of its v...
by FinancialDave
Thu Jul 26, 2018 3:24 pm
Forum: Investing - Theory, News & General
Topic: Vanguard Paper on Roth Conversion Analysis
Replies: 123
Views: 9972

Re: Vanguard Paper on Roth Conversion Analysis

Great discussion by all. I have been going through this analysis for my situation and this has been helpful, however, I still don't know if it makes sense for me our not. I will be able to convert up to $50,000 within the 22% bracket and because of the 20% pass through deduction I will only have to...
by FinancialDave
Thu Jul 26, 2018 3:00 pm
Forum: Investing - Theory, News & General
Topic: Vanguard Paper on Roth Conversion Analysis
Replies: 123
Views: 9972

Re: Vanguard Paper on Roth Conversion Analysis

In other words consider the person who saved $1 million at a "saved marginal" rate of 25%, vs the person who saved a $1 million at a "saved marginal" rate of 33%. Say they have no Roth funds. If their income need in retirement is exactly the same - let's call it $100k a year with $40k SS filling pa...
by FinancialDave
Thu Jul 26, 2018 1:45 pm
Forum: Investing - Theory, News & General
Topic: Vanguard Paper on Roth Conversion Analysis
Replies: 123
Views: 9972

Re: Vanguard Paper on Roth Conversion Analysis

Difficult to estimate though it may be, it is the actual marginal rate paid at withdrawal vs. the marginal rate saved at contribution that determines whether a given traditional contribution was "correct". And sometimes one needs to be suboptimal on some contributions to reach a global optimum. E.g...