Search found 6093 matches

by dratkinson
Sat Mar 16, 2024 6:28 pm
Forum: Personal Investments
Topic: Retire in 7 years, getting close enough to plan
Replies: 22
Views: 3211

Re: Retire in 7 years, getting close enough to plan

Background information.  There is a Hierarchy of Goodness among the different account types. Less Good:   tax-deferred/traditional accounts  --- taxable accounts --- tax-free/Roth accounts   :More Good Why does this hierarchy exist? --Tax-deferred/traditional account.  Everything that comes out is taxed as ordinary income, meaning we lose tax benefits: QDI, LTCG, FTC.  However, if contribution lowers our tax bracket, this may be a definite good, if we pay less to withdraw in retirement's lower tax bracket. --Taxable account.  Principal has already been taxed, so not taxed again to sell.  Additional tax benefits: QDI, LTCG, FTC, tax-exempt dividends, TLH. --Tax-free/Roth.  With a long time-horizon for growth to act before retirement, this is...
by dratkinson
Sat Mar 16, 2024 3:03 pm
Forum: Personal Finance (Not Investing)
Topic: Estimating RMD Taxes for Retirement Planning
Replies: 15
Views: 1809

Re: Estimating RMD Taxes for Retirement Planning

Your RMD tax will be zero if you eliminate your tax-deferred accounts.  How?  Convert them to taxable or Roth accounts.  But the devil is in the details. You have options, and perhaps time enough to execute them so you don't advance tax brackets to do so, to minimize or eliminate RMDs/taxes from your retirement equation. --You could convert the majority of your tax-deferred accounts to hold bonds to reduce expected growth/taxes on voluntary withdrawal/RMDs. --Since you'll pay tax on withdrawals anyway, pay it sooner to increase taxable/dividends* to offset retirement cost of living.   * I prefer muni fund tax-exempt dividends, which also reduces fed tax owed.  I believe VWLTX should typically return as much as TBM in 12%** fed tax bracket, ...
by dratkinson
Tue Mar 12, 2024 7:40 pm
Forum: Personal Finance (Not Investing)
Topic: Using Tax Refund for Estimated Taxes
Replies: 7
Views: 721

Re: Using Tax Refund for Estimated Taxes

IRA form 1040: --See 2023 1040 line 36: to apply a portion/all of 2023 tax refund to Q1 2024. --See 2024 1040 line 26 (assuming same line numbering): to recognize 2023 tax refund applied to Q1 2024 tax owed. Review IRS Safe Harbor rules: https://www.google.com/search?q=irs+safe+harbor+rules --Withhold enough in 2024 to avoid under-withholding penalty: increase employer withholding, withhold percentage from IRA withdrawal,.... --Meaning you don't need to pay the full amount of 2024 tax owed until April 2025 tax filing due date. Recall some BHs favor allowing the IRS to withdraw its payment directly from their bank account. See "Electronic Funds Withdrawal --- During efiling": https://www.irs.gov/payments --Your requirement is to en...
by dratkinson
Tue Mar 12, 2024 7:06 pm
Forum: Personal Investments
Topic: What Platforms are DIY Investors Using to Manage Portfolio
Replies: 26
Views: 2549

Re: What Platforms are DIY Investors Using to Manage Portfolio

I'm an older Vanguard client, but new to its brokerage platform experience.  It has been a sub-optimal experience. I've read much better things about the customer service experience from clients of Fidelity, Charles Schwab, et al.  They too have a few complaints, but seemingly much less than against Vanguard.  But since my favorite bond fund is not available in an ETF share class, I stay with Vanguard---having fewer accounts makes life simpler. Bottom line.  Choose whichever platform makes your life easier.  Since you have an existing Fidelity account, that's a good start. --Turn off all unneeded fees.  You don't need them as it's simple to learn to manage your investments---"do a few things right; avoid serious mistakes". --Since...
by dratkinson
Mon Mar 11, 2024 8:32 pm
Forum: Investing - Theory, News & General
Topic: "When" do you sell equities during Retirement?
Replies: 29
Views: 4404

Re: "When" do you sell equities during Retirement?

It all depends upon what you are trying to accomplish. While working. "The first rule of compounding is never to interrupt it unnecessarily.” Credit: https://www.bogleheads.org/forum/viewtopic.php?p=7761826#p7761826 If you rebalance in taxable by selling then can expect losses due to CG (capital gains) tax. Instead, it's preferable to rebalance with new money and redirected distributions. It's tax-free to rebalance in TA (tax-advantaged = tax-deferred (traditional) + tax-free (Roth)) accounts. But you'll want to save your Roth accounts for stocks for the expected higher tax-free growth/withdrawals. In retirement. To draw down accounts to pay for living expenses: --Sell whatever is high (stocks/bonds), when the market is up. Taxable acc...
by dratkinson
Mon Mar 11, 2024 7:50 pm
Forum: Personal Consumer Issues
Topic: Electrical Outlet Covers
Replies: 48
Views: 3698

Re: Electrical Outlet Covers

I don't understand what you are looking for.

If an exterior outlet weather cover, there are many.
Search: https://www.google.com/search?&q=electr ... r&tbm=isch

If trying to prevent a child from poking stuff into an interior outlet, can switch to tamper resistant outlets.
Search: https://www.google.com/search?q=tamper+ ... s&tbm=isch

If trying to match interior wall color, can look for paintable outlet/cover.
Search: https://www.google.com/search?q=paintab ... r&tbm=isch
by dratkinson
Sun Mar 10, 2024 4:03 pm
Forum: Personal Finance (Not Investing)
Topic: Bank of America Outbound ACH Fee now zero!
Replies: 22
Views: 2013

Re: Bank of America Outbound ACH Fee now zero!

I've only been a credit union member for my entire life. I am surprised people would stick around with a bank that charges a fee for ACH. This particular fee was only charged if you initiate the transfer on the BofA side. If you pulled from somewhere else via ACH there was no fee. +1. Both my local B&M CU and online bank charged some in-house ACH fees when I opened the accounts, but none if initiated from distant end. --So set up all push/pull ACH transactions to be initiated from the distant end: pension, SS, brokerage, tax refunds,.... --Once set up to avoid fees, I never looked back ...so don't know if those in-house fees still apply. I stay with both because CU is close, bank has never messed up my account, and both mail monthly st...
by dratkinson
Sun Mar 10, 2024 3:40 pm
Forum: Investing - Theory, News & General
Topic: [Should I buy this Samuelson economics textbook?]
Replies: 16
Views: 1258

Re: [Should I buy this Samuelson economics textbook?]

To learn about economics, I remember Thomas Sowell's "Basic Economics" being easy to understand. Ditto public library as source for current books. You may also find them in other formats (talking books,...).

Could also look for online PDFs.
--Basic Economics, (5th ed, 2015 ©): https://archive.org/details/basiceconomicsfifthedition
--Applied Economics (2004 ©): http://www.librafalass.weebly.com/uploa ... _gpop_.pdf
by dratkinson
Sat Mar 09, 2024 2:30 pm
Forum: US Chapters
Topic: Post your Financial Milestone Announcements Here
Replies: 3606
Views: 562420

Re: Post your Financial Milestone Announcements Here

Bollate wrote: Sat Mar 09, 2024 8:48 am With appreciation for the many valuable lessons learned/applied from here, after 5+ years into retirement, on March 7th, our investment accounts total closed into the two-comma territory. It was a fleeting moment however as it dropped below the next day, but soon enough we will remain above the line in what is becoming a slow ascending glide path....knock on wood! ;)
Most excellent! Best wishes for an enjoyable retirement.
by dratkinson
Sat Mar 09, 2024 1:56 pm
Forum: Investing - Theory, News & General
Topic: Can we expect TBM funds to outperform inflation?
Replies: 62
Views: 5113

Re: Can we expect TBM funds to outperform inflation?

Bonds are for safety.  Stocks are for growth and have a better chance to outperform inflation.  The typical advice is to use the safest bonds (treasuries = low yield) and skew toward stocks to increase growth. I went a different direction.  Why?  The safest bonds bored me to tears.   Since dividends are the major component of bond fund total return (= NAV appreciation + dividends), I skew toward more dividends from bonds that are within my risk tolerance.   --This gives me more dividends, typically; and I TLH the extra risk, when it appears.   --More dividends + TLHing is more interesting than boring treasuries.  :) Long story short.  My favorite bond fund is VWLTX (LT national muni).  Why?  Back when I researched bond options---before curr...
by dratkinson
Wed Mar 06, 2024 6:17 pm
Forum: Personal Finance (Not Investing)
Topic: tax filing using PDF
Replies: 22
Views: 1424

Re: tax filing using PDF

The USPS has armed law enforcement whose job it is to keep the mail safe and sound. They are well aware of the IRS and the importance of tax returns. So I'm not very worried about safety, just the delay. Same here. I do make a point to drop the returns off *inside* the post office, though. Ditto, at least in the past. I do use a "proof of mailing" form from the post office to prove that I did mail it on the 15th of the month. (I don't want to give the IRS any extra time with their fine tooth comb". :P ) I've been getting tired of the long wait at the post office to do this so this year I am going to "e-file" with Turbo Tax. Idea. Call local ACE hardware stores. Some have a USPO service center located in the back. I...
by dratkinson
Sun Mar 03, 2024 12:59 pm
Forum: Investing - Theory, News & General
Topic: VFWAX: 2023 1099-DIV reconciliation "increase to cost basis". what does this mean, exactly?
Replies: 30
Views: 4640

Re: VFWAX: 2023 1099-DIV reconciliation "increase to cost basis". what does this mean, exactly?

Electron wrote: Sat Mar 02, 2024 4:15 pm...
If the indicated changes to cost basis remain relatively small, I may just do nothing and keep things simple. It might be worth paying a little extra tax to simplify a tax return in some future year. :happy
Ditto. Agree.

Thank you for your well-reasoned explanation. It has reassured me that luck is probably the major component of this outcome ...and that if we really can't stand it, then we can sell all TISM---when tax-efficient to do so---and buy TSM.
by dratkinson
Fri Mar 01, 2024 6:12 pm
Forum: Personal Investments
Topic: Advice on meeting my financial goal
Replies: 19
Views: 2033

Re: Advice on meeting my financial goal

Thanks for the update.  We all love it when a plan comes together. Don't know what you've done since your original request for help, but: Consider adding more cash/bonds to taxable to move AA toward 50/50.  Why?  A safer AA is advised for retirement.  Why? --More cash.  An inflation-adjusted 5yr CD ladder, handles your inflation cost of living worry, and reduces need to sell investments during a crash.   --Refill CDs from bonds/stocks, traditional/taxable, whenever/whichever is up. --More bonds.  Bonds are needed and can be chosen that pay more dividends than stocks, so reduces need to sell/withdraw from stocks. --Bonds are safer than stocks so less volatile.  Selling them to pay for retirement cost of living during stock crash, avoids sell...
by dratkinson
Fri Mar 01, 2024 12:48 am
Forum: Investing - Theory, News & General
Topic: VFWAX: 2023 1099-DIV reconciliation "increase to cost basis". what does this mean, exactly?
Replies: 30
Views: 4640

Re: VFWAX: 2023 1099-DIV reconciliation "increase to cost basis". what does this mean, exactly?

Curious. A quick search didn't find anything. Search: https://www.google.com/search?q=VTIAX+increase+cost+basis VTIAX (total international stock market index, Adm) doesn't seem to have this problem this year. Was wondering if this is the result of luck, or is it constructed differently so permanently avoids this issue? I recall it used to be a fund-of-funds, so didn't qualify for FTC; but then something changed and it did qualify for FTC. This was at the same time (mid-'00s) when VFWAX did qualify for FTC. So the way VFWAX was constructed, bestowed a benefit not initially available to VTIAX. Question. Is there something about VTIAX that made it immune to "increased cost basis" issue this year? Question. Is the something a permanen...
by dratkinson
Thu Feb 29, 2024 2:04 am
Forum: Personal Consumer Issues
Topic: Best < $100 purchase?
Replies: 299
Views: 55811

Re: Best < $100 purchase?

ncbill wrote: Wed Feb 28, 2024 2:07 pm
dratkinson wrote: Mon Feb 26, 2024 11:44 pm...

To see all times/channels at once, I access website "On TV Tonight", on my smartphone.
See: https://www.ontvtonight.com/
It works, but it'd be nicer to have a large-format EPG on my TV---vs small-format EPG on my smartphone.
Can your phone be used as a WiFi hotspot?

If so, a used Tivo Roamio w/ lifetime service that has antenna tuners (some Roamio models have only cable tuners) off eBay is what I'd get.

The above downloads about two weeks of program information & you can initiate a manual connection to retrieve that guide info.

So it doesn't need a continuous internet connection.
Yes, it can. I'll look into it. Thanks for the idea.
by dratkinson
Wed Feb 28, 2024 12:41 pm
Forum: Personal Consumer Issues
Topic: Car brake lights won't turn off after install of new battery
Replies: 29
Views: 2553

How to install a vehicle solar battery charger.

... It is an old car so it has less to drain the battery.  It has gone over two weeks without me starting it.   I don't know whether the cigarette lighter works when off or not.  But I could do your suggestion of the OBDII cable.  Thanks for the info and links. Don't be too hasty.  First, do some testing/research so you don't waste money.  You want to identify your options.  Can you connect your solar charger through: --Cigarette lighter socket? --OBDII (On Board Diagnostic II, cars 1996+) port? --Any OBD (On Board Diagnostic, some cars 1968-1995) port? Failing in above, then you can make a direct battery connection.  (It should not be too hard to do.) Data point.  Can you connect through a cigarette lighter socket? Test.  With ignition sw...
by dratkinson
Wed Feb 28, 2024 1:45 am
Forum: Personal Consumer Issues
Topic: Car brake lights won't turn off after install of new battery
Replies: 29
Views: 2553

Re: Car brake lights won't turn off after install of new battery

I've edited this as I've read more and refined my understanding. Cars require some current drain to keep modern electronics smart. While a Ford model A has nothing that needs battery current to remember anything (wish I had a Ford model A 4-door town sedan), modern cars need battery current to save presets for vehicle computer, radio,... while ignition is OFF. See "Parasitic Battery Drain": https://no.co/blog/parasitic-draw Topic explains and tells how to measure a vehicle's parasitic battery drain. Idea.  Have a friend measure your car's battery's parasitic drain. Example.  From linked topic, assume you learn your car's parasitic drain is 85milliamp (seems to be a worst case), so 0.085 amps (= 85milliamps x 0.001amps/milliamp), s...
by dratkinson
Tue Feb 27, 2024 12:47 pm
Forum: Personal Finance (Not Investing)
Topic: Explanatory Statement for 2023 Return
Replies: 15
Views: 1721

Re: Explanatory Statement for 2023 Return

I had been using OLT.com for several years when I submitted my fed return with paper attachments.  At the time, I thought I needed more flexibility than OLT then provided for efiling. My fed return---more than half attachments---was stapled together using a heavy-duty stapler provided by ACE postal service center.  Also used small squares of their bemis (clear, tough mailing) tape, on top/bottom sheets for additional strength through which to staple. --There was no way anyone could easily separate/lose the return's parts.  I assumed the numbers were entered directly, but that the attachments may have been scanned for someone to review later, if needed. --The USPO "certified receipt" was my proof of mailing date. --I'm fairly certa...
by dratkinson
Mon Feb 26, 2024 11:44 pm
Forum: Personal Consumer Issues
Topic: Best < $100 purchase?
Replies: 299
Views: 55811

Re: Best < $100 purchase?

Tablo Over the Air DVR with 128GB internal storage. $99 It records TV shows we like so we can watch later, and not be tied to a TV schedule. After the recording is done, when I watch later, I can skip through commercials. I can watch on my phone or iPad as long as I'm on our house wireless. That's not a big restriction for me. Question. Tablo's EPG (electronic program guide), is it extracted from OTA program information, or is an internet connection required? I ask because I've been curious about making my life easier by adding a DVR ...but don't have home internet. My current EPG is one channel at a time---current channel, only---by using an attached digital converter box*. (* Digital Stream converter box: ~12hrs of current/future program...
by dratkinson
Mon Feb 26, 2024 11:00 pm
Forum: Personal Finance (Not Investing)
Topic: Explanatory Statement for 2023 Return
Replies: 15
Views: 1721

Re: Explanatory Statement for 2023 Return

So you have 2 options: new $100 TT s/w from Costco, or $10 mailed FreeTaxUSA return. What would you need to do to create an entry for BH topic "What frugal thing did you do today?" --TT option means: driving to Costco and spending ~$100 to buy new tax s/w, then reentering your tax data, and creating a thorough explanation. --FreeTaxUSA option means: creating a thorough explanation for existing tax s/w, then driving to USPO** and spending ~$10 to mail "certified receipt" paper returns*. (* Assumes your state return must also be paper.) What to do? In both cases, afterwards, your tax return paper record copy has your thorough explanation---with enough supporting details---that a few years from now, you can read it and reca...
by dratkinson
Mon Feb 26, 2024 9:59 am
Forum: Personal Consumer Issues
Topic: Best < $100 purchase?
Replies: 299
Views: 55811

Re: Best < $100 purchase?

AlwaysLearningMore wrote: Sun Feb 25, 2024 11:24 pm Among the best low-cost purchases are extra cellular phone charging cords + adapters to strategically place around the house.
Idea. Outlets with USB charging ports: https://www.google.com/search?q=outlet+with+usb+port

But don't know how safe these outlets are.

Wish I could find a charger that would only charge phone to 80% of full. Suppose to be better for battery. So I could leave phone on charge all of the time.


A quick search says:
--iPhone 15 can limit battery to 80% charge.
--Android A14 (assume lowest cost model) can limit battery to 80% charge.
Search: https://www.google.com/search?q=smartph ... arge+limit

I may have to wait for new phone to get battery charge limiting.
by dratkinson
Mon Feb 26, 2024 9:27 am
Forum: Personal Finance (Not Investing)
Topic: Explanatory Statement for 2023 Return
Replies: 15
Views: 1721

Re: Explanatory Statement for 2023 Return

Idea. Worst case, you could use FreeTaxUSA and mail your return(s). As a CYA, recall the advice is to use USPS and mail with "certified receipt" to prove you mailed by tax due date. I recall paying ~$5/return. Several years back, needed to explain a strange deduction on fed tax return. At the time, don't recall there being a method to enter an electronic statement into my online tax s/w, so created paper attachments. I assumed if the IRS questions the deduction, that I'd have forgotten some pieces of information by then, so attached a short one-page cover letter explaining each of multiple tabbed attachments. I supplied copies of as much information as I had: --Tab referencing IRS topic allowing deduction and how to enter it. (Ens...
by dratkinson
Sun Feb 25, 2024 2:02 am
Forum: Personal Consumer Issues
Topic: [On-going Scams - Post them here]
Replies: 1372
Views: 165419

Re: [On-going Scams - Post them here]

I got an email from my best friend, let's call him John, on the opposite coast asking me to send an Amazon gift card to a woman he knew who was just diagnosed with stage 4 mesothelioma, and whose daughter had recently died from COVID. He said he was out of town and he had tried to do it but it wasn't working. He promised to pay me back and said that when I replied he would provide the information on where to send the gift card online. The email address of my friend was exactly the same except for the email server, which was gmail.com, different than the one he always uses. My friend is not very tech savvy so the idea of him using multiple email servers is highly unlikely. He doesn't like change. I called him on his land line and confirmed ...
by dratkinson
Sat Feb 17, 2024 7:02 pm
Forum: Investing - Theory, News & General
Topic: VFWAX: 2023 1099-DIV reconciliation "increase to cost basis". what does this mean, exactly?
Replies: 30
Views: 4640

Re: VFWAX: 2023 1099-DIV reconciliation "increase to cost basis". what does this mean, exactly?

Note that "increase to cost basis" is NOT "return of capital / principal." Your basis to those tax lots will not change. BTW, a "return of capital / principal" will reduce the cost basis of affected lots. In affect, it turns that payment into a capital gain when you eventually sell the security. Here's the EFAV numbers (per share): The annual distribution was $2.132662, total ordinary dividends was $2.209781, and foreign tax paid was $0.066559. Normally, distribution + tax = dividends. Here the sum is $2.199221, leaving a discrepancy of $0.01056. Multiplying the distribution rate by shares owned matches my monthly statements. Multiplying the discrepancy by shares owned matches the amount shown as addition to b...
by dratkinson
Fri Feb 16, 2024 9:05 pm
Forum: Investing - Theory, News & General
Topic: VFWAX: 2023 1099-DIV reconciliation "increase to cost basis". what does this mean, exactly?
Replies: 30
Views: 4640

Re: VFWAX: 2023 1099-DIV reconciliation "increase to cost basis". what does this mean, exactly?

Thanks OP for creating this topic. Ditto. Asked Vanguard CSR to explain 1099DIV box 1a dividends being larger than what I'd received. Was told to see Vanguard's statement of "increase to cost basis".  Okay, I understand ...those tax lots get an increased cost basis and I'll benefit when I later sell the shares.  Got it. Problem.  All my VFWAX distributions were redirected to my bank ...I have no share lots to benefit from an "increase to cost basis".  What should I do? CSR: "We don't give tax advice. Talk to a tax professional." Would cost more than the benefit. Do you have IRS chapter and verse to explain what is happening? CSR: "It's in IRS pub 514". A quick look in pub 514 for "cost basis"...
by dratkinson
Sat Feb 10, 2024 4:43 pm
Forum: Personal Investments
Topic: looking for advice
Replies: 30
Views: 3138

Re: looking for advice

+1 Additional thoughts but the same conclusion. Thinking out loud. Paying off a mortgage sooner means every dollar you DON'T spend on mortgage interest is yours to keep. We're currently in an inverted-yield interest-rate environment: shorter-term yields are higher than longer-term. See 2022: Jan normal interest-rate environment, Dec inverted-yield environment: https://home.treasury.gov/resource-center/data-chart-center/interest-rates/TextView?type=daily_treasury_yield_curve&field_tdr_date_value=2022 See: 2023, inverted: https://home.treasury.gov/resource-center/data-chart-center/interest-rates/TextView?type=daily_treasury_yield_curve&field_tdr_date_value=2023 See: 2024, inverted: https://home.treasury.gov/resource-center/data-chart-...
by dratkinson
Thu Feb 08, 2024 1:05 am
Forum: Personal Consumer Issues
Topic: Best < $100 purchase?
Replies: 299
Views: 55811

Re: Best < $100 purchase?

My fav is one that goes by the unappetizing name of "Colon Cleaner". I will try yours to compare if I find it in my local hot sauce store. You might want to give mine a try, if you haven't already. I will give it a try if I can find it. You should be able to find the Tabasco Scorpion at most grocery stores. Colon cleaner review I just found: https://pepperscale.com/colon-cleaner-hot-sauce/ I see it is available online. Here is the same reviewer's review of yellowbird : https://pepperscale.com/yellowbird-habanero-hot-sauce/ And if you are looking for other recommendations, here is their list of top scorers: https://pepperscale.com/hot-sauce-rankings/ Thank you for this resource. I was looking for my own particular favorite, but it...
by dratkinson
Sun Feb 04, 2024 2:32 am
Forum: Personal Investments
Topic: Guidance
Replies: 8
Views: 1510

How to Create a Tax Return Simulation.

Suggestion.  Read Swedroe’s bond book, The Only Guide to a Winning Bond Strategy You’ll Ever Need .  Get it from a public library.  It will teach you which bonds to avoid, and which might work for you.  After reading his book, create a list of bond candidates that you want to test by creating a simulated tax return for each. Idea and background information.  When I went through this exercise and to keep myself straight, I recorded everything in an Excel spreadsheet: one column/bond candidate, one row/data item needed to compute after-tax income for each bond candidate.  Once you get the first column working for any bond type, then you can copy that column right to create a new column to record the results for the next bond candidate. I chan...
by dratkinson
Fri Feb 02, 2024 5:42 pm
Forum: Personal Consumer Issues
Topic: What frugal thing did you do today?
Replies: 4524
Views: 617495

Re: What frugal thing did you do today?

Follow up to "Replacement anode rod for standing pilot light water heater": https://www.bogleheads.org/forum/viewtopic.php?p=7653115#p7653115 Gotchas. --Mon. Young plumber showed up without tools, he thought I had them. Rescheduled for Fri/today. --Fri. Business owner showed up with tools, except for needed socket to remove/install anode. He'd tried to find one locally, but no joy. Told him I'd bought one with anode kit. He used it; it worked. --The old anode was a bear to remove. No way could I have removed it by myself. See "This Old House: How to Change a Water Heater Anode Rod": https://www.youtube.com/watch?v=2IUNIUZz4Os --Mr Trethewey used ~4' cheater pipe to break loose old anode. --My plumber's cheater pipe was ~...
by dratkinson
Fri Feb 02, 2024 4:43 pm
Forum: Personal Investments
Topic: Guidance
Replies: 8
Views: 1510

Re: Guidance

appreciate the responses dratkinson - so a 30% or 40% allocation of bonds in my taxable is worthwhile for any downturns in the market. naturally i would be foregoing 30-40% investment that can build more but at the cost of not being hurt by a downturn. i normally see around 10% for folks but is that at a different stage of someones life/risk averseness/or? Folks starting out in their 20-30s might decide to have 10% bonds. But with little invested, their bonds would be the little (~10%) in a target date fund. Whether folks invest more/less sooner/later in bonds depends upon our personal risk tolerance. --The case is made that with good health and a good/secure job, our human equity (ability to earn income, pay for our cost of living) serves...
by dratkinson
Thu Feb 01, 2024 10:44 pm
Forum: Personal Investments
Topic: Guidance
Replies: 8
Views: 1510

Re: Guidance

... Secondly, at what point do I start diversifying a bit more from VTI and head towards international plus bond perspective? I struggle with bonds today as I feel I have many years ahead of me still, but thats just a "feeling" versus logic and I have kept on the VTI stance just because quite honestly, its one of the recommendations from a three fund portfolio (clearly I am doing a "single fund" portfolio at the moment so not very clever of me). Since I max out my 401k, mega backdoor, and backdoor, i now sell all my rsu upon vest and leverage that for living expenses across the year (again, any residual after bills I throw to my brokerage account and buy VTI). Thirdly, once I am in my new mortgage situation, should I co...
by dratkinson
Wed Jan 31, 2024 5:45 pm
Forum: Personal Finance (Not Investing)
Topic: How much emergency cash is too much?
Replies: 32
Views: 3727

Re: How much emergency cash is too much?

Suggested wiki topic: https://www.bogleheads.org/wiki/Emergency_fund Some senior BHs say we don't need a dedicated EF, if we have enough to be able to treat all of our investments as our EFs. I implement that advice as: --1yr of living expenses in checking, savings, mmkt. Enough to postpone CG-reporting hassle from selling investments to pay for smaller emergencies. --Multiple years in bond (muni) funds in taxable. Used as an extended-tier of 1st-tier EFs, or for retirement otherwise. --Multiple years in stock funds in taxable. Used after taxable bonds expended, or for retirement otherwise. --Multiple years in TA (tax-advantaged = traditional/tax-deferred + Roth/tax-free) accounts. Used during doomsday scenario, or for retirement otherwise....
by dratkinson
Sat Jan 27, 2024 7:29 pm
Forum: Personal Investments
Topic: Portfolio / Retirement Review
Replies: 17
Views: 2221

Re: Portfolio / Retirement Review

Assuming you have more to invest than will fit into your TA (tax-advantaged = tax-deferred/traditional + tax-free/Roth) accounts (IRA, 401k,...), then can begin investing in your taxable account. These are recommended options for taxable: --TSM (US total stock market index fund/ETF): from Fidelity, Charles Schwab, Vanguard. Your choice. --TISM (total international stock market index fund/ETF): from Fidelity, Charles Schwab, Vanguard. Your choice. --IT (intermediate term) national municipal bond fund/ETF: VWIUX (low cost only for Vanguard clients), VTEB, or MUB. Your choice. I don't know of any recommended NC single-state munis. Muni funds. Having some bonds in taxable makes life easier by serving multiple duties: more after-tax income than ...
by dratkinson
Sat Jan 27, 2024 5:54 pm
Forum: Personal Finance (Not Investing)
Topic: State of Louisiana: Income Tax Return
Replies: 2
Views: 432

Re: State of Louisiana: Income Tax Return

I hope this helps. The tax instructions are king---you must track all of the tax instructions into each line of the tax returns. I'm not a current LA resident, and don't use TaxSlayer ...but this is the way I now* double-check my tax returns (fed+state): Step 1. (Done in Feb, after all tax documents received.) --Get tax return instruction booklets from local public library. --Use all tax documents to create/print draft tax returns. --Wait a few days from my mind to clear. Step 2. --Review each tax return by cross-referencing tax instructions to each line of the tax returns. --If I find an error, then I request help** from the tax s/w supplier to enter an override. So far, so good. (** Email support works well for me. It gives me time to con...
by dratkinson
Fri Jan 26, 2024 4:41 pm
Forum: Personal Consumer Issues
Topic: What frugal thing did you do today?
Replies: 4524
Views: 617495

Re: What frugal thing did you do today?

Found an old mechanic who fixed the idle problem on my old truck, that others could not ...now idles like new.
So impressed that I also had him replace timing belt and fix some leaks, so postponed buying another vehicle for another 10yrs/100K miles. :D
by dratkinson
Fri Jan 26, 2024 4:21 pm
Forum: Investing - Theory, News & General
Topic: Need help with math problem
Replies: 36
Views: 3612

Re: Need help with math problem

Apologies for my faulty memory. Assume a taxable account. Back in the days of uncovered shares (prior to 1 Jan 2012?), recall brokerage website showed a 1-line entry for each investment. New shares purchased (new money + reinvested dividends/CGs) increased the cost basis for our 1-line entry. --We'd need to tease out which was what (new money vs reinvested distributions) by going through our transactions history---required when we sold. --To handle this problem, I learned from BHs to track investment lots in Excel, so I knew the cost basis of every lot, so could decide which lots to sell---to control CGs exposure, and to correct 1099B. (CYA: Our offline tracking is reconciled against our brokerage statement each month.) After covered shares...
by dratkinson
Fri Jan 19, 2024 11:52 pm
Forum: Personal Consumer Issues
Topic: What frugal thing did you do today?
Replies: 4524
Views: 617495

Re: What frugal thing did you do today?

Nicolas wrote: Fri Jan 19, 2024 10:27 pm
tooluser wrote: Fri Jan 19, 2024 8:12 pm I shoveled my own snow using a snow shovel.
It snowed and I didn’t shovel, I just let it lie.
I shovel 2-3 close strips in driveway from front door to sidewalk ...so sun can poke through and warm driveway to melt the rest. :D
by dratkinson
Fri Jan 19, 2024 5:17 pm
Forum: Investing - Theory, News & General
Topic: Should Fixed Income be changed in 3-fund portfolio?
Replies: 95
Views: 8893

Re: Is BND still the right 3rd fund in the Portfolio?

The current inverted-yield interest-rate environment is causing exceptions to all that follows. Answering this question, before topics were merged: "Is BND still the right 3rd fund in the Portfolio?" My opinion.  If we must have price stability, then use insured bond products: savings, CDs, treasury notes/bills/bonds,....   Recalled forum advice.  When saving for future goals, and our time horizon is: --0-5yrs, we should use insured products.  (Our 1st-tier EFs are here.) --5-10yrs, we can use recommended bonds/funds.  (Our extended-tier EFs are here.) -->10yrs, we can use recommended stocks/funds. Bonds.  I only use bond funds as individual bonds are too much trouble for me; let fund managers do the worrying. If you notice, bond ...
by dratkinson
Thu Jan 18, 2024 2:15 pm
Forum: Personal Finance (Not Investing)
Topic: Giving High-Level Advice to Younger People If You Are Older
Replies: 70
Views: 5790

Re: Giving High-Level Advice to Younger People If You Are Older

The short answer. I recall the forum's opinion seems to be that we can't force anyone to learn/do something they don't want to do. The long answer. On the other hand, we can point folks to helpful references ...for when they are ready. I recall reading this and believed it to be good advice, but maybe in more detail than most want, "Collective thoughts [investing mini-reference]": https://www.bogleheads.org/forum/viewtopic.php?t=7353 I've found these library books to be helpful for young folks just starting out:* -- The Only Investment Guide You’ll Every Need , Andrew Tobias. General personal-finance topics, --or, Making the Most of Your Money , Jane Bryant Quinn. -- The Bogleheads’ Guide to Investing . A structured overview of wi...
by dratkinson
Wed Jan 17, 2024 6:11 pm
Forum: Personal Consumer Issues
Topic: What frugal thing did you do today?
Replies: 4524
Views: 617495

Re: What frugal thing did you do today?

This is my story. I also bought a flexible anode rod, and tried to install it myself on a Bradford-White. The old one did not seem to want to come out, so I hired a plumber. This was a frugal-fail, because I had purchased wrenches. I do regularly follow the instructions to drain off some water. I bought the 30 dollar kit and also an adjustable breaker bar (telescoping) from Harbor Freight down the road. Even with all valves closed did spill a little water on the basement floor which flowed to the drain and hence to the sump. Took 10 minutes. Previous anode completely gone except for rusty center post. Heater was 10 years old at the time. Hard water, have water softener. Plan to recheck and replace if necessary after three years, which will...
by dratkinson
Sun Jan 14, 2024 11:05 pm
Forum: Personal Consumer Issues
Topic: What frugal thing did you do today?
Replies: 4524
Views: 617495

Re: What frugal thing did you do today?

Replacement anode rod for standing pilot light water heater. After reading your post, I watched a YouTube video.  It looks very simple to replace an anode rod. Screw the old one out and screw a new one in.  Why did you hire a plumber? Plumber hasn't been hired yet as we're still talking.  The business called was WH's installer from 6yrs ago ...and they were easy to work with.  So planned these steps back then: call 'em back after warranty expires, install segmented replacement anode, notice condition/wear on removed anode to wag a better replacement interval,.... Agree it's probably a simple job, but the devil is in the details ...so thought watching someone experienced would be helpful.  I don't mind paying a little more to avoid gotchas....
by dratkinson
Sun Jan 14, 2024 4:19 pm
Forum: Personal Consumer Issues
Topic: What frugal thing did you do today?
Replies: 4524
Views: 617495

Re: What frugal thing did you do today?

Replacement anode rod for standing pilot light water heater. --My new 40gal Rheem WH is 6yrs old this month so out of warranty. So called installer to come back and swap anode. --Because of low ceiling, they planned to send out two plumbers, drain/disconnect WH, and tip it over to remove/install a new solid anode. Me: Whoa! Wait a second. I talked to your parts guy when WH was installed and told him about my low ceiling, and he suggested using a flexible replacement anode to get around low-ceiling problem; something like: https://www.homedepot.com/p/Rheem-PROTECH-54-in-by-0-84-in-Diameter-Flexible-Magnesium-Anode-Rod-for-Electric-and-Gas-Water-Heaters-SP8371B/205652259 . He: We don't have that part in stock and our cost is $200 from Bradfo...
by dratkinson
Sun Jan 14, 2024 2:55 pm
Forum: Personal Consumer Issues
Topic: Best < $100 purchase?
Replies: 299
Views: 55811

Re: Best < $100 purchase?

When we go south for 3 months I use these Battery Tenders to keep the batteries in shape for when we return. I used to disconnect the batteries but this is so much easier and better for the battery. Saves me from replacing expensive batteries as often. https://www.amazon.com/gp/product/B00068XCQU/ref=ppx_yo_dt_b_search_asin_title?ie=UTF8&psc=1 For a few dollars less, can consider the Battery Tender Jr: https://www.amazon.com/s?k=battery+tender+junior I use them to keep my Onan generator (NH 6.5Kw, tested biannually) and old truck (not driven often enough to keep battery fully charged) batteries topped up. Pro tip. --If you use the same group size battery in your generator as in your vehicle, then you have a backup if your vehicle batte...
by dratkinson
Fri Jan 12, 2024 6:52 pm
Forum: Personal Investments
Topic: My kid asked me for advice! Please advise
Replies: 33
Views: 7635

Re: My kid asked me for advice! Please advise

+1 for emergency fund. I favor using a muni fund in taxable as an extended-tier EF. Most BHs avoid using a muni fund in a low tax bracket, but I believe one can be made to work okay. Why? First. Compute a muni's TEY (taxable-equivalent yield) as: muni's SEC yield / (1 -fed tax bracket). Second. Compare a muni's TEY to taxable bond fund SEC yield and bank APY. Higher is better. Example. My favorite muni is VWLTX. Let's compute/compare its TEY to TBM's SEC yield in 12% fed tax bracket. --VWLTX SEC yield = 3.47%; TEY = 3.47% / (1-.12) = 3.94% TEY; see: https://investor.vanguard.com/investment-products/mutual-funds/profile/vwltx --VBTLX (TBM) SEC yield = 4.29%; see: https://investor.vanguard.com/investment-products/mutual-funds/profile/vbtlx N....
by dratkinson
Fri Jan 12, 2024 5:19 pm
Forum: Personal Consumer Issues
Topic: Help Finding Lower Cost Carrier WIRELESS = CONSUMER CELLULAR
Replies: 19
Views: 1763

Re: Help Finding Lower Cost Carrier WIRELESS = CONSUMER CELLULAR

Could search for: https://www.google.com/search?q=best+cellphone+plans


I went with Visible prepaid unlimited: talk, text, data for $25 total/mo: https://www.visible.com/ .
--Pro. I use phone's hotspot for home internet access. Haven't found any lower-cost plan with unlimited hotspot data.
--Con. Hotspot throttled to 5Mbps, one device. (Not a deal breaker.)
--Con. Service can be de-prioritized, and has been: generally in early afternoon. (Not a deal breaker.)
--Con. Roaming not allowed. (Not a deal breaker.)

It works for me.
by dratkinson
Fri Jan 12, 2024 1:57 am
Forum: Personal Consumer Issues
Topic: What frugal thing did you do today?
Replies: 4524
Views: 617495

Re: What frugal thing did you do today?

Our 2-drawer filing cabinet is a piece of crap. We must have bought it many years ago when we were young and broke and *had* to buy the cheapest product available, and weren't wise enough to buy second hand. The drawers are so hard to open that it moves the whole filing cabinet, so I have to hold the top when I open the drawer. It's so cheap and flimsy that I bent it while doing so. I hate it. Searched FB marketplace for a few minutes and found a $500+ HON 4-drawer filing cabinet for $50. Great condition. Wondering if I should list the crappy one I hate to see if I can get a few dollars for it! :D In mid-80s, was looking for a file cabinet and disappointed with the quality of the new ones I could afford. Asked for recommendations for bette...
by dratkinson
Thu Jan 11, 2024 5:12 am
Forum: Personal Finance (Not Investing)
Topic: Taxes - which option should we choose?
Replies: 16
Views: 2147

Re: Taxes - which option should we choose?

From this: https://www.irs.com/en/tax-brackets-deductions/ If "we" are single, then it appears you are in the 35% fed tax bracket with either income option. If "we" are married, then it appears you are in the 32% fed tax bracket with either income option. Idea. Put a healthy portion of your income into a muni fund, in taxable.   Why?   --You need bonds in retirement, so if your bonds are in taxable, then you can skew more of your TA accounts to stocks for their expected higher growth.   --It's nice to have the monthly muni dividends to rebalance/spend. --Bonds (munis) in taxable can be used as an extended tier of your 1st-tier EFs (checking, savings, CDs,...).  With >3yrs of living expenses (1yrs in 1st-tier, >2yrs in ex...
by dratkinson
Tue Jan 09, 2024 1:13 pm
Forum: US Chapters
Topic: Post your Financial Milestone Announcements Here
Replies: 3606
Views: 562420

Re: Post your Financial Milestone Announcements Here

I came to index investing and the BHs after retiring, so was way behind the power curve. A few years after finding the BHs and reading the forum and some of the recommended books, decided to put all of my bonds in taxable so I could skew my small rIRA to stocks to maximize its tax-free growth. The market growth since 2008-9 has meant that I'm always rebalancing (new money, only) into munis* in a failing attempt to reach my planned 50/50 AA. (* I’ve enjoyed a few TLH opportunities and their associated carryover losses.) While going through 2023 end-of-year stuff to get ready for next tax year (withholdings,...), noticed my muni dividends, for the first time, fully covered my cost of living*. (Which means the other stuff becomes gravy: remain...
by dratkinson
Sat Jan 06, 2024 8:47 am
Forum: Personal Consumer Issues
Topic: Freetaxusa vs Turbotax
Replies: 121
Views: 16807

Re: Freetaxusa vs Turbotax

Yup that discount code they have offered every year I've used them is no longer being offered this year (or if it is, I can't find a valid one to use). In previous years they also had an add on with free amendments and audit defense for $6. That has now been separated out and is more expensive. Still going to use Free tax usa but it's not the same value it was in previous years for me. Gonna have to dig deep for that extra $1.50… OLT has free amend, state return is 9.95 +1 for OLT. Of all the IRS Free File options, it has been the least restrictive (limits: income, age), so I've used it exclusively. After SS pushed me over the free file limit, I paid $15.90 for OLT's Premium option (fed 7.95, state 7.95, efile). In some years I've needed h...
by dratkinson
Thu Jan 04, 2024 12:13 pm
Forum: Personal Consumer Issues
Topic: What frugal thing did you do today?
Replies: 4524
Views: 617495

Re: What frugal thing did you do today?

I was mistaken, my ToDo list is *.rtf format in WordPad. (Enough formatting options to be flexible, but not as fiddly as *.doc format.) My ToDo list is just a text list, maintained in ascending order, by dates. --Finished items are deleted. --Past due items or those still work-in-progress, float to the top when the month is past. --The current month is slightly separated from the remainder of the list for visual clarity. --Appointments for a month are listed before general items for a month. --The Date and Item columns are aligned, but not so in the forum example. (Left as a student exercise.) I maintain a list for current year (2024 actual) and next year (2025 boilerplate). Why? --When new items are added that's expected to happen every ye...