Search found 4765 matches

by rkhusky
Tue Feb 20, 2018 2:25 pm
Forum: Investing - Help with Personal Investments
Topic: Three Fund Portfolio Excluding TSP?
Replies: 21
Views: 1785

Re: Three Fund Portfolio Excluding TSP?

tadamsmar wrote:
Tue Feb 20, 2018 12:29 pm
Lets say you have $75 in a Roth and $100 in the TSP and a 25% tax bracket.
Suppose you had $100 in Roth and $100 in the TSP?
by rkhusky
Tue Feb 20, 2018 1:45 pm
Forum: Personal Finance (Not Investing)
Topic: Connecticut is charging sales tax on out of state purchases
Replies: 38
Views: 2213

Re: Connecticut is charging sales tax on out of state purchases

Recently somewhere I read (can't recall where) where Penna was going to require vendors to send a report to Dept of Rev listing sales made to PA customers. PA residents are supposed to report/pay use tax with income tax return. Don I wonder how they would enforce that for out-of-state vendors witho...
by rkhusky
Tue Feb 20, 2018 1:38 pm
Forum: Personal Finance (Not Investing)
Topic: Can I use Free H&R Block online to file my taxes if my taxable income is more than $99,999?
Replies: 9
Views: 718

Re: Can I use Free H&R Block online to file my taxes if my taxable income is more than $99,999?

I would just try to file and see what happens. They may just ask for a credit card number to charge you for Deluxe.
by rkhusky
Tue Feb 20, 2018 10:01 am
Forum: Personal Finance (Not Investing)
Topic: Connecticut is charging sales tax on out of state purchases
Replies: 38
Views: 2213

Re: Connecticut is charging sales tax on out of state purchases

The use tax in my state is only applicable if the tax paid was less than our state's sales tax, and is equal to the difference between the two.
by rkhusky
Mon Feb 19, 2018 7:34 pm
Forum: Investing - Help with Personal Investments
Topic: What do Bogleheads think of Passive income through Dividend Stocks
Replies: 34
Views: 3042

Re: What do Bogleheads think of Passive income through Dividend Stocks

Okay, so basically you are saying don't invest in dividend stocks at all and that investing in dividend stocks for $500-$1000/month is a bad idea? Just turn to other sources of passive income like REITs, real estate, royalties, etc.? What would the best options to generating $500-$1000/month in pas...
by rkhusky
Mon Feb 19, 2018 12:55 pm
Forum: Investing - Theory, News & General
Topic: Is it "cute" to invest in sector funds?
Replies: 23
Views: 1397

Re: Is it "cute" to invest in sector funds?

There are said to be based on academic research, like the Fama and French papers of the 1990s, that suggest that specific patterns of concentration into "asset classes" of stocks with certain characteristics have been superior in the past to the market as a whole. A bit of a nitpick. People invoke ...
by rkhusky
Mon Feb 19, 2018 12:28 pm
Forum: Investing - Theory, News & General
Topic: Using cFiresim
Replies: 13
Views: 1347

Re: Using cFiresim

cFIREsim used to be one of my favorite retirement planning tools, but now in the results they do not provide any data under statistics heading. So Firecalc has become more useful even though I don't like their interface as much. I noticed that change recently. At first I thought it was a bug in my ...
by rkhusky
Mon Feb 19, 2018 12:22 pm
Forum: Investing - Help with Personal Investments
Topic: Tax Adjusting a Taxable Account
Replies: 18
Views: 825

Re: Tax Adjusting a Taxable Account

Capital gains in the 12% bracket are taxed at 0%.
by rkhusky
Mon Feb 19, 2018 11:47 am
Forum: Investing - Help with Personal Investments
Topic: Roth conversions to shrink RMDs
Replies: 15
Views: 1017

Re: Roth conversions to shrink RMDs

If she pays the taxes out of the tIRA and stays in the same tax bracket, tIRA and Roth results will be exactly the same. If she pays taxes out of a taxable account, doing the Roth conversion has a slight advantage, although cap gain taxes would eliminate some of the advantage. What with the IRMAA is...
by rkhusky
Mon Feb 19, 2018 11:37 am
Forum: Personal Finance (Not Investing)
Topic: Misc Income [how to report with no 1099]
Replies: 41
Views: 1583

Re: Misc Income [how to report with no 1099]

Add it to wages (line 7, 1040). If you have a business and were working under that business, line 12 & Sched C would be appropriate.
by rkhusky
Mon Feb 19, 2018 7:04 am
Forum: Investing - Help with Personal Investments
Topic: Reinvesting RMDs
Replies: 18
Views: 2068

Re: Reinvesting RMDs

2. Is there any problem by selling a fund (deferred), then buying the same fund right away (taxable)? I read about wash sales, but this seems to involve how loss is treated? No problem whatsoever. Wash sale complexities come into play when you sell from taxable and incurr a loss. If you sell from d...
by rkhusky
Mon Feb 19, 2018 6:54 am
Forum: Investing - Help with Personal Investments
Topic: Roth conversions to shrink RMDs
Replies: 15
Views: 1017

Re: Roth conversions to shrink RMDs

If she has $1M, then the first year RMD would add $36.5K to her income (divide account balance by 27.4). Would that amount bump her up into the next tax bracket? I suspect not if she is at the bottom of the 24% bracket. Removing $200K would reduce the RMD by $7.3K. Would that make a difference? Ther...
by rkhusky
Sun Feb 18, 2018 9:15 pm
Forum: Investing - Help with Personal Investments
Topic: Switching Total Domestic/Large Cap to Small/Mid Cap in Tax-Advantaged Accounts for TLH
Replies: 25
Views: 1199

Re: Switching Total Domestic/Large Cap to Small/Mid Cap in Tax-Advantaged Accounts for TLH

Actual text regarding wash sales from IRS publication 550: A wash sale occurs when you sell or trade stock or securities at a loss and within 30 days before or after the sale you: Buy substantially identical stock or securities, Acquire substantially identical stock or securities in a fully taxable...
by rkhusky
Sat Feb 17, 2018 10:09 pm
Forum: Investing - Theory, News & General
Topic: Vanguard LifeStrategy Funds vs. Target Date Funds
Replies: 62
Views: 5144

Re: Vanguard LifeStrategy Funds vs. Target Date Funds

Four percent withdrawal over 30 years. Study covered 86 rolling 30-year periods from 1900 and ending in 2014. See study here: http://web.iese.edu/JEstrada/PDF/Research/Refereed/Buffett-AA.pdf Thanks. I think that one needs to be careful about using the results of these types of studies, which are s...
by rkhusky
Sat Feb 17, 2018 8:31 pm
Forum: Personal Consumer Issues
Topic: Is there a way to send text messages on my computer?
Replies: 24
Views: 2484

Re: Is there a way to send text messages on my computer?

For AT&T, try @mms.att.net. Sometimes these services only work for basic 160 character text only messages, whereas some phones use a more complex structure that allows long texts and/or picture & video. While I can receive @vzwpix.com texts to my email, when I reply, the message doesn't go through. ...
by rkhusky
Sat Feb 17, 2018 8:23 pm
Forum: Investing - Theory, News & General
Topic: Target Retirement Fund Question
Replies: 20
Views: 1485

Re: Target Retirement Fund Question

You have no guarantee of that. There may be no stock market in 2060, or a United States or an inhabitable Earth. It's likely there will be, but you have no guarantee. If you have your funds in a tax-advantaged account, you can always move to a different fund if Target Retirement changes to something...
by rkhusky
Sat Feb 17, 2018 4:53 pm
Forum: Investing - Theory, News & General
Topic: Vanguard LifeStrategy Funds vs. Target Date Funds
Replies: 62
Views: 5144

Re: Vanguard LifeStrategy Funds vs. Target Date Funds

One other thing. About the VG target retirement income fund. The stocks/bonds ratio is only 30/70 and the Javier Estrada study showed that 30/70 (and below) had a high failure rate (12.8% for 30/70) and that 40/60 and above had low failure rates (3.5% and below). So, I don't use the VG income fund ...
by rkhusky
Sat Feb 17, 2018 4:50 pm
Forum: Investing - Help with Personal Investments
Topic: Substantially Equal Periodic Payments (Funding Early Retirement)
Replies: 17
Views: 1366

Re: Substantially Equal Periodic Payments (Funding Early Retirement)

SEPP is better than forgoing Traditional account and investing in taxable. When I looked into it, it did not seem that difficult. It is not entirely without flexibility, but does require you to lock up some of your portfolio for at least five years. While you can't take additional withdrawals, you c...
by rkhusky
Sat Feb 17, 2018 4:32 pm
Forum: Investing - Theory, News & General
Topic: Vanguard LifeStrategy Funds vs. Target Date Funds
Replies: 62
Views: 5144

Re: Vanguard LifeStrategy Funds vs. Target Date Funds

One other thing. About the VG target retirement income fund. The stocks/bonds ratio is only 30/70 and the Javier Estrada study showed that 30/70 (and below) had a high failure rate (12.8% for 30/70) and that 40/60 and above had low failure rates (3.5% and below). So, I don't use the VG income fund ...
by rkhusky
Sat Feb 17, 2018 1:08 pm
Forum: Personal Consumer Issues
Topic: Is there a way to send text messages on my computer?
Replies: 24
Views: 2484

Re: Is there a way to send text messages on my computer?

I send to @vtext.com for Verizon all the time.
by rkhusky
Sat Feb 17, 2018 7:13 am
Forum: Investing - Theory, News & General
Topic: Vanguard LifeStrategy Funds vs. Target Date Funds
Replies: 62
Views: 5144

Re: Vanguard LifeStrategy Funds vs. Target Date Funds

Question: How does one truly evaluate their risk tolerance or proper AA? You should look at how much you expect to contribute to retirement funds over your lifetime and what different allocations have returned in the past, to get a feeling for how much risk you need to take to have a reasonable exp...
by rkhusky
Sat Feb 17, 2018 6:52 am
Forum: Investing - Help with Personal Investments
Topic: Switching Total Domestic/Large Cap to Small/Mid Cap in Tax-Advantaged Accounts for TLH
Replies: 25
Views: 1199

Re: Switching Total Domestic/Large Cap to Small/Mid Cap in Tax-Advantaged Accounts for TLH

I don't think you need to do that. Just don't buy any VTSAX and VTIAX in your tax advantaged accounts until 31 days have passed since you TLH. And hopefully you haven't bought any of those two in the last 30 days. The next dividend for those two funds is the end of March, so you shouldn't need to wo...
by rkhusky
Fri Feb 16, 2018 9:52 pm
Forum: Investing - Theory, News & General
Topic: Vanguard LifeStrategy Funds vs. Target Date Funds
Replies: 62
Views: 5144

Re: Vanguard LifeStrategy Funds vs. Target Date Funds

Keep in mind that you aren’t locked into anything at this point. As Taylor said, you can change things very easily in a tax advantaged account. So, just decide what you want for the next year or two, 80/20, 90/10 or 100/0. And then do some reading and thinking and reevaluate in a year or two.
by rkhusky
Fri Feb 16, 2018 6:38 pm
Forum: Investing - Theory, News & General
Topic: Vanguard LifeStrategy Funds vs. Target Date Funds
Replies: 62
Views: 5144

Re: Vanguard LifeStrategy Funds vs. Target Date Funds

Keep in mind that without bonds you will not be able to purchase stocks when there is a decline. 10% bonds does not create that much drag. Also, while your portfolio is rather small, stock declines aren't that big of a deal. But once you have a larger portfolio, seeing a few $100K disappear is rathe...
by rkhusky
Fri Feb 16, 2018 4:02 pm
Forum: Investing - Help with Personal Investments
Topic: Are we TOO diversified? Time to hire a professional? Who has?
Replies: 14
Views: 1831

Re: Are we TOO diversified? Time to hire a professional? Who has?

Impossible to know without the fund info. Diversification among providers should not be a goal.
by rkhusky
Fri Feb 16, 2018 2:49 pm
Forum: Investing - Help with Personal Investments
Topic: Substantially Equal Periodic Payments (Funding Early Retirement)
Replies: 17
Views: 1366

Re: Substantially Equal Periodic Payments (Funding Early Retirement)

One way to get money out of a Traditional IRA (which may have been funded by a rollover from a 401k) if you have a substantial Roth IRA, is to withdraw contributions to the Roth IRA, while at the same time replacing them with Roth conversions from the Traditional IRA. Other than that, SEPP seems lik...
by rkhusky
Fri Feb 16, 2018 12:32 pm
Forum: Investing - Theory, News & General
Topic: Vanguard LifeStrategy Funds vs. Target Date Funds
Replies: 62
Views: 5144

Re: Vanguard LifeStrategy Funds vs. Target Date Funds

I'd say that Vanguard's choice of glidepath is more based around risk-averse investors rather than what was mathematically optimal (historically, of course). Review of their whitepaper seems to suggest this to me as well. I agree. Vanguard would suggest saving more, so that your withdrawal rate and...
by rkhusky
Fri Feb 16, 2018 11:42 am
Forum: Investing - Theory, News & General
Topic: Vanguard LifeStrategy Funds vs. Target Date Funds
Replies: 62
Views: 5144

Re: Vanguard LifeStrategy Funds vs. Target Date Funds

But as is often commented, just investing in a portfolio rather than considering a larger picture involving annuities and other options is too narrow a context for retirement planning. The Vanguard white paper does touch on pensions and SS. In addition, the white paper addresses an average retiree ...
by rkhusky
Fri Feb 16, 2018 11:16 am
Forum: Investing - Theory, News & General
Topic: Vanguard LifeStrategy Funds vs. Target Date Funds
Replies: 62
Views: 5144

Re: Vanguard LifeStrategy Funds vs. Target Date Funds

Further, most of these target date funds eventually move to a very conservative AA of something like 30/70, which is outside the recommended range suggested by the safe withdrawal rate research. It must not be outside the recommended range according to the research at Vanguard, Fidelity, and the ot...
by rkhusky
Fri Feb 16, 2018 10:35 am
Forum: Investing - Help with Personal Investments
Topic: How to Invest $1000 in a Vanguard Roth IRA
Replies: 9
Views: 711

Re: How to Invest $1000 in a Vanguard Roth IRA

One advantage of 529s you may have not considered, is that she is explicitly your beneficiary. It ensures the money would go to her if you die where that may be more complicated with the Roth depending one her age and any other potential beneficiaries. It is a primary reason we use 529s.... I think...
by rkhusky
Fri Feb 16, 2018 7:33 am
Forum: Investing - Help with Personal Investments
Topic: Tax loss harvesting MUB
Replies: 11
Views: 916

Re: Tax loss harvesting MUB

VTEB and MUB tracks the same index: S&P National AMT-Free Municipal Bond Index. You might be subject to "substantially identical" rule if you cross-over into this gray area. There's never been a reported case that anyone has found of the IRS declaring a wash in a case like this. Has there been a re...
by rkhusky
Thu Feb 15, 2018 3:04 pm
Forum: Personal Finance (Not Investing)
Topic: Florida Local Sales Tax
Replies: 5
Views: 409

Re: Florida Local Sales Tax

[...]Don't know, but Washington isn't listed either. Washington has so many different sales tax rates that perhaps you have to use actual amount. Perhaps Florida is the same way? Oh good. That makes sense then. I was really wondering why they had dropped FL. But now that I realize other states have...
by rkhusky
Thu Feb 15, 2018 2:56 pm
Forum: Personal Finance (Not Investing)
Topic: Florida Local Sales Tax
Replies: 5
Views: 409

Re: Florida Local Sales Tax

In the grand scheme of things, this is not a big deal; however, I would like my taxes to be correct. So, I am curious why the last page on the Schedule A (Form 1040) instructions fails to list local taxes for the state of Florida. Am I missing something? Don't know, but Washington isn't listed eith...
by rkhusky
Thu Feb 15, 2018 1:44 pm
Forum: Investing - Theory, News & General
Topic: How many of you use the "4% rule" during retirement?
Replies: 61
Views: 7111

Re: How many of you use the "4% rule" during retirement?

Has anyone taken out their "4%" allowance when they didn't need the money and, in fact, not spent it? Has anyone increased their spending in order to fully use their "4%" allowance? If not, I would say they are not slavishly following the rule.
by rkhusky
Thu Feb 15, 2018 1:29 pm
Forum: Investing - Theory, News & General
Topic: What is the evidence against slice and dice?
Replies: 59
Views: 4456

Re: What is the evidence against slice and dice?

What time periods are you looking at? Period: 1972-2017 What happens if you change the dates? If you arbitrarily pick a few thousand start and end days, spanning between 10 and 30 years, what is the stability of the evidence that you presented? One good or bad DAY could be driving the bulk of your ...
by rkhusky
Wed Feb 14, 2018 8:38 pm
Forum: Personal Finance (Not Investing)
Topic: No 1099-MISC yet
Replies: 9
Views: 646

Re: No 1099-MISC yet

I can't imagine the IRS complaining that you added unsupported income and paid more in taxes. But perhaps there is a special form that you have to fill out? I've added undocumented income and interest with no ill effects. Whether they inquire about it is one thing. However, there is an issue with "...
by rkhusky
Wed Feb 14, 2018 8:35 pm
Forum: Investing - Help with Personal Investments
Topic: Why are TLT and AGG declining so much?
Replies: 10
Views: 1287

Re: Why are TLT and AGG declining so much?

Bonds are supposed to be sort of uncorrelated with stocks, so they don't care what stocks are doing. What you are describing is negative correlation or anti-correlation, which is not the relationship between stocks and bonds, on average.
by rkhusky
Wed Feb 14, 2018 11:46 am
Forum: Personal Finance (Not Investing)
Topic: No 1099-MISC yet
Replies: 9
Views: 646

Re: No 1099-MISC yet

I can't imagine the IRS complaining that you added unsupported income and paid more in taxes. But perhaps there is a special form that you have to fill out? I've added undocumented income and interest with no ill effects.
by rkhusky
Tue Feb 13, 2018 7:14 pm
Forum: Investing - Help with Personal Investments
Topic: TSP and otherwise for income
Replies: 14
Views: 926

Re: TSP and otherwise for income

Full disclosure, I've been meeting with various investment peeps who say the prob with staying in TSP and taking monthly withdrawals is the money is comes from each of my investment funds (20G, 80C), apparently bad if C is down when the disbursement occurs. It doesn't sound like any of you feel thi...
by rkhusky
Tue Feb 13, 2018 4:16 pm
Forum: Investing - Help with Personal Investments
Topic: Three Fund Portfolio Excluding TSP?
Replies: 21
Views: 1785

Re: Three Fund Portfolio Excluding TSP?

That’s a great idea. Perhaps I’ll put most of the bonds into TSP then the rest into a desired L-fund. Then domestic and international stock in the other three accounts. I have a spreadsheet and use Personal Capital to help keep my AA straight. That should work if you plan to do most of your rebalan...
by rkhusky
Tue Feb 13, 2018 4:11 pm
Forum: Investing - Help with Personal Investments
Topic: Rebalancing thru contributions?
Replies: 12
Views: 644

Re: Rebalancing thru contributions?

There is no evidence that any particular rebalancing scheme will be better than another in terms of future returns. Therefore, choose one that you feel comfortable with and that fits your lifestyle.
by rkhusky
Tue Feb 13, 2018 8:31 am
Forum: Investing - Help with Personal Investments
Topic: TSP and otherwise for income
Replies: 14
Views: 926

Re: TSP and otherwise for income

I recently retired and will be withdrawing 1800 monthly from my TSP to supplement FERS and SS. Currently my TSP balance is 600k. I have moderate to high risk tolerance. Since monthly withdrawals are taken proportionately from each of my TSP fund allocations, is it advisable to withdrawal a lump sum...
by rkhusky
Tue Feb 13, 2018 8:13 am
Forum: Investing - Help with Personal Investments
Topic: Choosing muni bond funds
Replies: 52
Views: 4422

Re: Choosing muni bond funds

The historical default rate for AAA muni bonds is essentially zero, for AA muni bonds it is also extremely small, on the order of 0.05%, and for A muni bonds, also very small, perhaps 0.1%. See https://en.wikipedia.org/wiki/Bond_credit_rating, although more recent data would be nice. And, for higher...
by rkhusky
Tue Feb 13, 2018 7:49 am
Forum: Investing - Help with Personal Investments
Topic: Three Fund Portfolio Excluding TSP?
Replies: 21
Views: 1785

Re: Three Fund Portfolio Excluding TSP?

I know that we are supposed to look at all of the accounts together. However, what are people's thoughts about keeping an L-fund in the TSP (it has a super low ER and then I don't have to worry about allocating and reblancing the odd fund options)? Then, I could just look at the two Roths and a tax...
by rkhusky
Mon Feb 12, 2018 4:02 pm
Forum: Investing - Theory, News & General
Topic: Passive Investing Best For A 'rigged Market'? [insider trading]
Replies: 13
Views: 1121

Re: Passive Investing Best For A "rigged Market'?

Wellington is fine in a tax-advantaged account. If you insist on one fund, one of the Target Retirement or LifeStrategy funds would be the most diverse.
by rkhusky
Mon Feb 12, 2018 3:32 pm
Forum: Investing - Help with Personal Investments
Topic: Where To Allocate 600,000 Fixed Income?
Replies: 11
Views: 1475

Re: Where To Allocate 600,000 Fixed Income?

How long do you expect before you need to spend the money? Duration of Limited Term TE is 2.8 years, duration of Intermediate Term TE is 5.4 years. Duration is the expected length of time for the extra income from an increase in interest rate to offset the drop in price resulting from the increase i...
by rkhusky
Mon Feb 12, 2018 2:13 pm
Forum: Investing - Help with Personal Investments
Topic: Help with the pros and cons of diversification strategies
Replies: 9
Views: 339

Re: Help with the pros and cons of diversification strategies

Total Market consists of 1000's of US companies of all sizes and sectors. Total International consists of 1000's of ex-US companies of all sizes and sectors. Total World combines both at market weight. Can't get more diversified than that in terms of low-cost liquid stock investing. You could also a...
by rkhusky
Mon Feb 12, 2018 9:31 am
Forum: Personal Finance (Not Investing)
Topic: Converting to Roth a 2017 contribution made in 2018
Replies: 7
Views: 496

Re: Converting to Roth a 2017 contribution made in 2018

You cannot just convert the 2017 contribution. You have to consider all your Traditional balances together, which means that if the prior Traditional balances were deducted, you will owe some tax on the conversion. Recharacterization looks like a better choice, especially if the 2017 contribution ha...
by rkhusky
Sun Feb 11, 2018 7:00 am
Forum: Investing - Help with Personal Investments
Topic: Arguments against rising equity glide path?
Replies: 40
Views: 2410

Re: Arguments against rising equity glide path?

There is always the risk that the future will not look like the past. If you don't need to take the risk, should you? If the market drops by 50% and doesn't come back to even for 20 years, how would that affect your standard of living? Yep that would suck. Unless perhaps your AA was 30/70, which is...