Search found 5354 matches

by rkhusky
Tue Sep 18, 2018 12:28 pm
Forum: Personal Finance (Not Investing)
Topic: "Taking" RMDs
Replies: 10
Views: 551

Re: "Taking" RMDs

Of course, whether you actually sell an asset or simply transfer it out of the IRA is a separate issue from taking the distribution. There is no transfer. With the RMD, you sell shares in the IRA/401k and either send the cash to a checking account or buy shares in a taxable account with the cash.
by rkhusky
Tue Sep 18, 2018 12:22 pm
Forum: Investing - Theory, News & General
Topic: With expense-free funds, are other Fidelity fund obsolete?
Replies: 6
Views: 279

Re: With expense-free funds, are other Fidelity fund obsolete?

Both Fidelity and Vanguard's fund lineup has gotten cluttered up with old funds that that seem to have been superseded by new! improved! funds. A Vanguard example is the Vanguard FTSE All-World Ex-US fund, VFWIX, and the Vanguard Total International Stock Index Fund, VGTSX. I don't know the reasons...
by rkhusky
Tue Sep 18, 2018 6:03 am
Forum: Investing - Theory, News & General
Topic: 401k: Why not only after-tax?
Replies: 9
Views: 882

Re: 401k: Why not only after-tax?

Make sure you have considered the effects of SS taxation and taxes on qualified dividends and cap gains. Both can cause marginal rates to be higher than one might expect. See https://www.bogleheads.org/wiki/Taxation_of_Social_Security_benefits I see no reason to want marginal tax rates to be the sam...
by rkhusky
Tue Sep 18, 2018 5:55 am
Forum: Investing - Theory, News & General
Topic: Equity in house / Do you use it?
Replies: 45
Views: 2356

Re: Equity in house / Do you use it?

Used some equity to finance an addition. Wife pointed out that we could have withdrawn investments from a taxable account to pay for the addition, so it was equivalent to taking out equity to invest.
by rkhusky
Tue Sep 18, 2018 5:48 am
Forum: Investing - Help with Personal Investments
Topic: Facing Retirement at year end
Replies: 17
Views: 1611

Re: Facing Retirement at year end

Check an online annuity calculator to see what $430K will buy you. See what kind of Obamacare policy you can get online. You may be eligible for subsidies. Once you know what your full expenses will be, you can see if your savings and SS is sufficient. The starting point for withdrawal rates is 4% (...
by rkhusky
Tue Sep 18, 2018 5:35 am
Forum: Investing - Help with Personal Investments
Topic: TSP to Roth IRA Tax Strategy (Post Retirement)
Replies: 12
Views: 613

Re: TSP to Roth IRA Tax Strategy (Post Retirement)

The Federal Retirement Thrift Investment Board announced a few months ago that it expected to implement the liberalized withdrawal rules in September 2019, about one year from now. I’m trying to wait until then before I begin making Roth conversions from my TSP account. In the meantime, we’re makin...
by rkhusky
Tue Sep 18, 2018 4:46 am
Forum: Investing - Help with Personal Investments
Topic: Which fixed income fund to rebalance into stock fund in a correction?
Replies: 5
Views: 564

Re: Which fixed income fund to rebalance into stock fund in a correction?

MM if bonds down. Why are you holding MM? The interest rate risk. If you plan to hold the bonds longer than the average duration of the fund, increased interest rates shouldn't worry you. If you are planning to withdraw in a year or two, MM fund is okay (but so is a CD or high rate savings account).
by rkhusky
Tue Sep 18, 2018 3:27 am
Forum: Investing - Theory, News & General
Topic: Advantage of Rebalancing for different asset allocations
Replies: 9
Views: 629

Re: Advantage of Rebalancing for different asset allocations

A portfolio that averages 7% return annually has already done better than one that averages 5%, assuming no new contributions. There is no way for the latter to outperform the former. obvious. Sure, but determining whether or not there is a rebalancing bonus requires a careful setup of the problem....
by rkhusky
Tue Sep 18, 2018 3:07 am
Forum: Investing - Help with Personal Investments
Topic: TSP to Roth IRA Tax Strategy (Post Retirement)
Replies: 12
Views: 613

Re: TSP to Roth IRA Tax Strategy (Post Retirement)

You should look at marginal rates first and map out the different marginal rates you may experience with different amounts of Roth conversions. SS taxation causes a hump in the marginal rates (see https://www.bogleheads.org/wiki/Taxation_of_Social_Security_benefits) and effective rates are useful to...
by rkhusky
Mon Sep 17, 2018 5:29 pm
Forum: Investing - Theory, News & General
Topic: Advantage of Rebalancing for different asset allocations
Replies: 9
Views: 629

Re: Advantage of Rebalancing for different asset allocations

A portfolio that averages 7% return annually has already done better than one that averages 5%, assuming no new contributions. There is no way for the latter to outperform the former. No one knows whether a 100/0 portfolio will outperform a 70/30 portfolio over any future time period. No one know wh...
by rkhusky
Mon Sep 17, 2018 5:18 pm
Forum: Investing - Help with Personal Investments
Topic: TSP to Roth IRA Tax Strategy (Post Retirement)
Replies: 12
Views: 613

Re: TSP to Roth IRA Tax Strategy (Post Retirement)

Look here for some spreadsheets & calculators: https://www.bogleheads.org/wiki/Tools_and_calculators. For example, the Personal finance toolbox or Retiree Portfolio Model. For a quick check, look at your expected marginal rates in retirement before and after taking SS and before and after RMD's hit....
by rkhusky
Sat Sep 15, 2018 8:58 pm
Forum: Personal Finance (Not Investing)
Topic: Any issue with overpaying taxes?
Replies: 23
Views: 1582

Re: Any issue with overpaying taxes?

Just put $0 and be done with it. Or calculate approximately how much extra in taxes (=tax rate*num shares*(price now - $1)) it would cost and decide if it is worth the hassle of tracking down evidence of the true basis.
by rkhusky
Sat Sep 15, 2018 6:31 am
Forum: Investing - Theory, News & General
Topic: Vanguard and Certificate of Deposits
Replies: 8
Views: 1101

Re: Vanguard and Certificate of Deposits

TIAX wrote:
Fri Sep 14, 2018 9:34 pm
yousha wrote:
Fri Sep 14, 2018 8:18 pm
I now learned that you must have a brokerage account to do so...I am not interested in opening one. Thanks anyway.
I believe you can open a new separate brokerage account and leave your old mutual fund accounts.
True.
by rkhusky
Sat Sep 15, 2018 6:25 am
Forum: Investing - Theory, News & General
Topic: Age in Bonds - Still Recommended?
Replies: 127
Views: 7923

Re: Age in Bonds - Still Recommended?

There is no right or wrong answer. It is all personal preference and circumstances.

Personally, at the moment I am age+5 in bonds.

I always consider the possibility that the market could drop 50% and not return to even for 10 years.
by rkhusky
Fri Sep 14, 2018 12:24 pm
Forum: Investing - Theory, News & General
Topic: Isn't cap weighting less diversified than equal weighting?
Replies: 72
Views: 2897

Re: Isn't cap weighting less diversified than equal weighting?

One thing I don't understand, quite. Essentially, a cap-weighted fund mirrors buying the "market"; all the stocks in the "market" in proportion to their relative cap weights -- and then it just continues to own the "shares" that it started with forever in effect. No rebalancing. Stuff that goes way...
by rkhusky
Thu Sep 13, 2018 11:31 am
Forum: Investing - Theory, News & General
Topic: Isn't cap weighting less diversified than equal weighting?
Replies: 72
Views: 2897

Re: Isn't cap weighting less diversified than equal weighting?

Imagine you have 2 stocks, ticker SALT and WATER. If both are efficiently prized so that neither is more likely to outperform the other (in terms of risk-adjusted expected return), I would 'bet' 50% of my money on each; even though 96.5% of total bets are put on water. What determines my allocation...
by rkhusky
Thu Sep 13, 2018 11:24 am
Forum: Investing - Help with Personal Investments
Topic: buying Fidelity funds in a Vanguard account for purposes of tax loss harvesting
Replies: 23
Views: 1276

Re: buying Fidelity funds in a Vanguard account for purposes of tax loss harvesting

There's only one Vanguard ETF--VWO, which is just the ETF version of VEMAX (that I am TLH-ing away from), and so it wouldn't work as a TLH partner. So I'm back to having to get a non-Vanguard TLH partner for emerging markets. Does anyone know of a way to buy a partner (either an ETF or a mutual fun...
by rkhusky
Thu Sep 13, 2018 11:19 am
Forum: Investing - Help with Personal Investments
Topic: buying Fidelity funds in a Vanguard account for purposes of tax loss harvesting
Replies: 23
Views: 1276

Re: buying Fidelity funds in a Vanguard account for purposes of tax loss harvesting

GrowthSeeker wrote:
Thu Sep 13, 2018 10:38 am
But is there a way to absolutely know?
There is no way to know until the IRS tells us. Everything else is speculation. My opinion is that two funds that track different indices are not substantially identical.
by rkhusky
Thu Sep 13, 2018 7:47 am
Forum: Investing - Theory, News & General
Topic: Isn't cap weighting less diversified than equal weighting?
Replies: 72
Views: 2897

Re: Isn't cap weighting less diversified than equal weighting?

Yes by definition market cap weighting is highly concentrated in the large stocks. It is not by definition. It is just the way things are right now. And I'm not even sure I would characterize it as highly concentrated. One would have to define what "large" means. If all companies had the same marke...
by rkhusky
Thu Sep 13, 2018 7:44 am
Forum: Investing - Theory, News & General
Topic: Isn't cap weighting less diversified than equal weighting?
Replies: 72
Views: 2897

Re: Isn't cap weighting less diversified than equal weighting?

The standard equal weighting scheme uses the artificial boundary of company names. What you really want is equal weighting of market share, which is what cap weighting gives you. Here is an example: Apple produces a number of products, let's say it is 10. If Apple was broken up into 10 different com...
by rkhusky
Thu Sep 13, 2018 6:11 am
Forum: Investing - Help with Personal Investments
Topic: Yet another "double check my 401k selection" post
Replies: 4
Views: 286

Re: Yet another "double check my 401k selection" post

For simplicity, I would just match what is in VFFVX (TR 2055) if you are comfortable with the 90/10 AA (you could choose TR 2045 or TR 2050 if you want to be a bit more conservative). That way, when you want to rebalance, you can just look at VFFVX for the allocations. You can either use Ext Market ...
by rkhusky
Wed Sep 12, 2018 4:41 pm
Forum: Investing - Help with Personal Investments
Topic: Wash Sale rules help
Replies: 25
Views: 1052

Re: Wash Sale rules help

I don't really want to spend the time investigating and setting up and alternative fund to get into in the meantime, plus there's the rule about not investing in similar type funds which is exactly what I'd be interested in doing. The IRS terminology is "substantially identical", which I think is m...
by rkhusky
Wed Sep 12, 2018 4:37 pm
Forum: Investing - Theory, News & General
Topic: Why do we expect TSM to keep growing?
Replies: 48
Views: 4780

Re: Why do we expect TSM to keep growing?

We could reach a plateau where the NAV doesn't increase and all you are left with are dividends.
by rkhusky
Wed Sep 12, 2018 6:38 am
Forum: Investing - Theory, News & General
Topic: New era for TSP "I" Fund?
Replies: 13
Views: 1588

Re: New era for TSP "I" Fund?

As of January 1st the TSP "I" Fund will be very different from what it has been before... Specifically, more comprehensively International (I). Do you have a source for that date? I have not yet seen a specific calendar day cited for the planned index change. +1 The news stories I've seen all indic...
by rkhusky
Tue Sep 11, 2018 6:16 pm
Forum: Investing - Help with Personal Investments
Topic: Wash Sale rules help
Replies: 25
Views: 1052

Re: Wash Sale rules help

I don't really want to spend the time investigating and setting up and alternative fund to get into in the meantime, plus there's the rule about not investing in similar type funds which is exactly what I'd be interested in doing. The IRS terminology is "substantially identical", which I think is m...
by rkhusky
Tue Sep 11, 2018 4:01 pm
Forum: Investing - Help with Personal Investments
Topic: Wash Sale rules help
Replies: 25
Views: 1052

Re: Wash Sale rules help

One follow up question, then some Wonk fun for Vanguard users.... Say I sell fund ABC inside a taxable account for a realized loss of $1,000. I own the same fund inside my IRA. 20 days later, that ABC Fund inside my IRA gets a dividend of $100 which is reinvested into Fund ABC, so essentially I mad...
by rkhusky
Tue Sep 11, 2018 1:04 pm
Forum: Investing - Help with Personal Investments
Topic: Wash Sale rules help
Replies: 25
Views: 1052

Re: Wash Sale rules help

However, as it turns out, I also hold VISMI inside another account held with a different institution. This account is a 401k Roth. This institution does not allow me to redirect the gains/dividends to any other fund except itself. My only option there would be to sell 100% of this fund and get into...
by rkhusky
Tue Sep 11, 2018 12:55 pm
Forum: Investing - Help with Personal Investments
Topic: Wash Sale rules help
Replies: 25
Views: 1052

Re: Wash Sale rules help

One follow up question, then some Wonk fun for Vanguard users.... Say I sell fund ABC inside a taxable account for a realized loss of $1,000. I own the same fund inside my IRA. 20 days later, that ABC Fund inside my IRA gets a dividend of $100 which is reinvested into Fund ABC, so essentially I mad...
by rkhusky
Tue Sep 11, 2018 6:28 am
Forum: Investing - Help with Personal Investments
Topic: VTWSX vs MGGPX which one better?
Replies: 4
Views: 360

Re: VTWSX vs MGGPX which one better?

According to Morningstar MGGPX has 36 stock holdings and 16 other holdings (not sure what these are). VTWSX (Total World) has 7,987 stock holdings and 70 other holdings.
by rkhusky
Tue Sep 11, 2018 5:24 am
Forum: Investing - Help with Personal Investments
Topic: Wash Sale rules help
Replies: 25
Views: 1052

Re: Wash Sale rules help

Thanks for the help and info! I've seen some people say that since the IRS specifically said an IRA can cause a wash sale, but said nothing about a 401(k) that investments in a 401(k) don't cause a wash sale, but that's not a risk I'm interested in taking. It sure would be nice if the IRS made this...
by rkhusky
Mon Sep 10, 2018 4:29 pm
Forum: Investing - Help with Personal Investments
Topic: Double check on wash sale (or not)
Replies: 9
Views: 336

Re: Double check on wash sale (or not)

I read somewhere that IRS is less clear on wash sales with 401k accounts, I would be making the replacement purchase in 401 if I were to do it, Hence I'm asking the question again here to get as much information as possible on whether there is clear guidance on wash sale on this scenario. Also I'm ...
by rkhusky
Mon Sep 10, 2018 4:17 pm
Forum: Investing - Help with Personal Investments
Topic: Double check on wash sale (or not)
Replies: 9
Views: 336

Re: Double check on wash sale (or not)

Even if I'm purchasing that stock in tax advantaged? That is actually worse because you completely lose the ability to claim the loss in a tax-advantaged account. If the replacement purchase was in a taxable account, you could add the disallowed loss to the basis of the replacement shares and then ...
by rkhusky
Mon Sep 10, 2018 4:10 pm
Forum: Investing - Help with Personal Investments
Topic: Double check on wash sale (or not)
Replies: 9
Views: 336

Re: Double check on wash sale (or not)

If you sell a stock for a loss in a taxable account and then purchase that same stock within plus or minus 30 days of the sale, you cannot claim a loss on your taxes. The IRS has provided no exceptions, unless you are a dealer in stocks or securities and these transactions are part of your business....
by rkhusky
Mon Sep 10, 2018 11:39 am
Forum: Investing - Theory, News & General
Topic: Tax loss harvesting - wash sale rule
Replies: 57
Views: 3101

Re: Tax loss harvesting - wash sale rule

I believe that mutual fund share classes that can convert to a different class without tax liability are substantially identical for the reasons given above. I think that includes Vanguard ETF to other share classes even though Vanguard doesn't allow direct conversion. I think that's just a decisio...
by rkhusky
Sat Sep 08, 2018 7:02 pm
Forum: Investing - Help with Personal Investments
Topic: Should I choose Roth 401K because of SS tax?
Replies: 8
Views: 921

Re: Should I choose Roth 401K because of SS tax?

It seems that SS is taxed up to 85% based on combined income. Is it a good idea to choose Roth 401K over Pretax 401K so that combined income will be lower at retirement to reduce social security tax? I understand the current tax rate vs retirement tax rate is a major consideration, but is this also...
by rkhusky
Sat Sep 08, 2018 3:56 pm
Forum: Investing - Help with Personal Investments
Topic: Avoiding wash sales issues with taxable and non-IRA retirement accounts
Replies: 30
Views: 1845

Re: Avoiding wash sales issues with taxable and non-IRA retirement accounts

In camp 2, there is the concern that the spirit of the ruling would seem to apply to other retirement accounts, even if these accounts (e.g., 401k, 403b, 457) were not mentioned. Taxable accounts were not mentioned either. 26 U.S. Code § 1091 encompasses all sales/purchases of stocks or securities ...
by rkhusky
Sat Sep 08, 2018 3:41 pm
Forum: Investing - Help with Personal Investments
Topic: Avoiding wash sales issues with taxable and non-IRA retirement accounts
Replies: 30
Views: 1845

Re: Avoiding wash sales issues with taxable and non-IRA retirement accounts

People like to make up rules on this topic that don't exist. Exactly. The rule is given by 26 U.S. Code § 1091, with clarification on IRA's given by RR 2008-05. All else is opinion. There is ZERO risk to having the same funds in a 401k. They do not cause wash sales and even if the IRS changes their...
by rkhusky
Sat Sep 08, 2018 1:00 pm
Forum: Investing - Help with Personal Investments
Topic: Avoiding wash sales issues with taxable and non-IRA retirement accounts
Replies: 30
Views: 1845

Re: Avoiding wash sales issues with taxable and non-IRA retirement accounts

A fundamental nature of the tax code is; that which is not expressley prohibited is permitted until and unless it is prohibited. Claiming a loss on a wash sale is expressly prohibited . I would say that inferring that the lack of mention of 401k's in the latter ruling means that wash sales do not a...
by rkhusky
Sat Sep 08, 2018 8:38 am
Forum: Investing - Help with Personal Investments
Topic: Avoiding wash sales issues with taxable and non-IRA retirement accounts
Replies: 30
Views: 1845

Re: Avoiding wash sales issues with taxable and non-IRA retirement accounts

A fundamental nature of the tax code is; that which is not expressley prohibited is permitted until and unless it is prohibited. Claiming a loss on a wash sale is expressly prohibited. What we have is the IRS code that describes a wash sale without mentioning any specific investment vehicle, just t...
by rkhusky
Sat Sep 08, 2018 6:28 am
Forum: Investing - Help with Personal Investments
Topic: Avoiding wash sales issues with taxable and non-IRA retirement accounts
Replies: 30
Views: 1845

Re: Avoiding wash sales issues with taxable and non-IRA retirement accounts

The IRS has had almost ten years to expand Rev. Rul. 2008-5 to other tax-advantaged accounts and has chosen not to do so. They implemented this prospectively and would likely do the same with any future expansion. I agree. I doubt that it was an oversight. In general the IRS seems very little conce...
by rkhusky
Fri Sep 07, 2018 8:39 pm
Forum: Personal Finance (Not Investing)
Topic: "Open Social Security" calculator: feature requests, bug reports, etc
Replies: 195
Views: 17664

Re: "Open Social Security" calculator: feature requests, bug reports, etc

1) Please include a way to include an actual expected lifetime. For example if I expect to live up to 90 due to family history etc. it would be nice to be able to just enter that number instead of going by life expectancy table. This is already included in advanced mode (Advanced options checkbox a...
by rkhusky
Fri Sep 07, 2018 8:37 pm
Forum: Investing - Help with Personal Investments
Topic: Avoiding wash sales issues with taxable and non-IRA retirement accounts
Replies: 30
Views: 1845

Re: Avoiding wash sales issues with taxable and non-IRA retirement accounts

I understand the reasoning behind the wash sale rule and I see no reason why IRA's would be fundamentally different from 401K's. I choose to treat them the same with regards to wash sales, regardless of whether the IRS has explicitly addressed them. If the IRS specifically exempts 401k from wash sal...
by rkhusky
Fri Sep 07, 2018 11:38 am
Forum: Investing - Theory, News & General
Topic: Mutual Fund Fee Wars Will Encourage Bad Behavior
Replies: 26
Views: 2604

Re: Mutual Fund Fee Wars Will Encourage Bad Behavior

Vanguard does not let you easily buy back into a fund that you have recently sold for 30 days. (There is a work around that perhaps Vanguard should close) This is a good curb on churning. A few funds, such as Int Corp Bond, have purchase fees, which further discourages churning.
by rkhusky
Fri Sep 07, 2018 6:55 am
Forum: Investing - Help with Personal Investments
Topic: Question about tax loss harvesting
Replies: 3
Views: 247

Re: Question about tax loss harvesting

Make sure that you haven't bought any VTIAX in any other account, including spouse, within the last 30 days.
by rkhusky
Fri Sep 07, 2018 6:36 am
Forum: Personal Finance (Not Investing)
Topic: Tax-exempt interest to reduce IRMAA?
Replies: 15
Views: 908

Re: Tax-exempt interest to reduce IRMAA?

The other reason I wouldn't do it is because the benefit of lower potential MAGI isn't worth the higher risk of munis to me. YMMV. Highly rated munis are only slightly less safe than US-Gov bonds and much safer than the 36% of non-US-Gov bonds in a Total Bond fund. There have been virtually no defa...
by rkhusky
Thu Sep 06, 2018 7:22 pm
Forum: Personal Finance (Not Investing)
Topic: Tax-exempt interest to reduce IRMAA?
Replies: 15
Views: 908

Re: Tax-exempt interest to reduce IRMAA?

The other reason I wouldn't do it is because the benefit of lower potential MAGI isn't worth the higher risk of munis to me. YMMV. Highly rated munis are only slightly less safe than US-Gov bonds and much safer than the 36% of non-US-Gov bonds in a Total Bond fund. There have been virtually no defa...
by rkhusky
Thu Sep 06, 2018 6:38 pm
Forum: Personal Finance (Not Investing)
Topic: Tax-exempt interest to reduce IRMAA?
Replies: 15
Views: 908

Re: Tax-exempt interest to reduce IRMAA?

Perhaps the OP needs stocks in taxable and bonds in tax-advantaged.
by rkhusky
Thu Sep 06, 2018 12:43 pm
Forum: Investing - Help with Personal Investments
Topic: should I reinvest capital gains and dividends in a taxable account?
Replies: 11
Views: 980

Re: should I reinvest capital gains and dividends in a taxable account?

I have vtsax and schwab target date fund in a taxable account. should I reinvest or just take the cash? It doesn't matter, you are taxed on the dividend/cap gain whether you reinvest or not. It is personal preference. There are those that don't like to keep track of a lot of small purchases and so ...
by rkhusky
Wed Sep 05, 2018 10:51 am
Forum: Personal Finance (Not Investing)
Topic: Charitable Tax Deductions
Replies: 46
Views: 3424

Re: Charitable Tax Deductions

It appears that I will not be able to deduct any charitable donations separately since I will be no where near the new standard deduction of about $26,500 (for over 65) if I total all my local and state taxes which are limited to $10,000. My taxes should actually go down under the new tax plan by s...
by rkhusky
Wed Sep 05, 2018 7:19 am
Forum: Investing - Help with Personal Investments
Topic: Exchange Target Date 2055 into 2060. Does it matter WHEN?
Replies: 16
Views: 978

Re: Exchange Target Date 2055 into 2060. Does it matter WHEN?

Feel free to switch at any time. It will make no difference for the next 15 years. Thanks. Yeah, maybe psychologically it feels good to exchange now. To sell my TD2055 (it's a small lot, but I'm at profits of a few thousand $$ since I started in the 401k 3 years ago). Although of course I'm immedia...