Search found 4627 matches

by rkhusky
Mon Jan 22, 2018 9:16 pm
Forum: Investing - Theory, News & General
Topic: Does a Wider rebalancing band not make more sense?
Replies: 19
Views: 1482

Re: Does a Wider rebalancing band not make more sense?

No one knows what will be the best rebalancing band. If you set it too small, then you rebalance multiple times during a steep decline, which isn't optimal. If you set it too large, then you miss all the mid-sized declines See Grabiner's post. The frequency of rebalancing depends on you AA and over...
by rkhusky
Mon Jan 22, 2018 9:11 pm
Forum: Personal Consumer Issues
Topic: Is a minivan the only commuter vehicle / backup with 3 children?
Replies: 12
Views: 565

Re: Is a minivan the only commuter vehicle / backup with 3 children?

Seems easiest if the one with all the kids take the minivan. The other can use a small car. As previously mentioned, the 8-year old probably doesn't need a car seat. If he is short, there are small boosters that don't take much room. And, do you intend to have car seats installed in both vehicles, o...
by rkhusky
Mon Jan 22, 2018 11:09 am
Forum: Investing - Theory, News & General
Topic: Does a Wider rebalancing band not make more sense?
Replies: 19
Views: 1482

Re: Does a Wider rebalancing band not make more sense?

No one knows what will be the best rebalancing band. If you set it too small, then you rebalance multiple times during a steep decline, which isn't optimal. If you set it too large, then you miss all the mid-sized declines See Grabiner's post. The frequency of rebalancing depends on you AA and over...
by rkhusky
Mon Jan 22, 2018 11:05 am
Forum: Investing - Help with Personal Investments
Topic: Couple questions for taxable account
Replies: 14
Views: 1097

Re: Couple questions for taxable account

A tax efficient fund is one that minimizes realized capital gains and dividends each year. You can find the history for VWIGX here: https://institutional.vanguard.com/VGApp/iip/site/institutional/investments/price?fundId=0081 This shows that the fund hasn't realized capital gains for the last 10 yea...
by rkhusky
Sun Jan 21, 2018 6:56 pm
Forum: Investing - Theory, News & General
Topic: Does a Wider rebalancing band not make more sense?
Replies: 19
Views: 1482

Re: Does a Wider rebalancing band not make more sense?

I am retired and hold a 30% stock allocation. My rebalancing strategy is to rebalance when my allocation of stocks jumps above 35% or drops under 25%. Although the strategy keeps my risk under control, I wonder if an asymmetric band would not be more profitable. What I mean is that stocks drop 10%+...
by rkhusky
Sun Jan 21, 2018 8:05 am
Forum: Personal Finance (Not Investing)
Topic: Father inlaw taxes: pension taxation
Replies: 19
Views: 1855

Re: Father inlaw taxes: pension taxation

carolinaman wrote:
Sun Jan 21, 2018 6:01 am
I understand that some states, especially high tax states, are aggressive in challenging changes in state residency. For that reason, your FIL needs to meet the requirements for changing of state residency and be able to prove that.
+1. I've heard that CA is very aggressive about residency.
by rkhusky
Sun Jan 21, 2018 7:59 am
Forum: Personal Finance (Not Investing)
Topic: Excel for Personal Finance Accounting ?
Replies: 25
Views: 1619

Re: Excel for Personal Finance Accounting ?

I'm sure you could find an Excel-based (or other spreadsheet-based) personal finance package on the web, but you could also try GnuCash, which is a free accounting package. It has a few quirks and is missing a couple of the reports that I liked in Quicken, but I've been using it for the last year an...
by rkhusky
Sat Jan 20, 2018 11:01 pm
Forum: Investing - Theory, News & General
Topic: Traditional IRA No use for me?
Replies: 12
Views: 894

Re: Traditional IRA No use for me?

Thank you all for the responses. ccieemeritus you are bringing up an interesting point for me. I will explain how I was going to contribute to TIRA. I do not have any pre tax method to contribute toe TIRA (means, my employer does not offer any IRA plans). So, what I to do is take $5500 from my Chec...
by rkhusky
Sat Jan 20, 2018 5:46 pm
Forum: Investing - Help with Personal Investments
Topic: ROTH
Replies: 1
Views: 211

Re: ROTH

Hi, I'm wondering what is the best way (currently) to invest $1,000 to get to a $3,000 minimum for a life strategy fund. Should I hold a vanguard 500 etf or a 2055 target fund? My question is I'm starting with the $1,000 to try to get to the $3,000 for the growth fund the quickest with minor weekly...
by rkhusky
Sat Jan 20, 2018 1:29 pm
Forum: Investing - Help with Personal Investments
Topic: Rebalancing...please critique
Replies: 13
Views: 1150

Re: Rebalancing...please critique

Do you expect your income to significantly increase in the coming years (i.e. into the 24%+ bracket)? Do you expect a sizable pension ($30K+/yr)? Even with an income of $46K, you will be in the 12% tax bracket and can rebalance in taxable with no tax on gains (up to a point). Why don't you sell sto...
by rkhusky
Sat Jan 20, 2018 1:14 pm
Forum: Investing - Theory, News & General
Topic: Post Your Morningstar Box Style
Replies: 76
Views: 3645

Re: Post Your Morningstar Box Style

22 21 20
10 09 08
04 03 03
by rkhusky
Sat Jan 20, 2018 8:30 am
Forum: Investing - Help with Personal Investments
Topic: Rebalancing...please critique
Replies: 13
Views: 1150

Re: Rebalancing...please critique

Do you expect your income to significantly increase in the coming years (i.e. into the 24%+ bracket)? Do you expect a sizable pension ($30K+/yr)? Even with an income of $46K, you will be in the 12% tax bracket and can rebalance in taxable with no tax on gains (up to a point). Why don't you sell stoc...
by rkhusky
Fri Jan 19, 2018 2:39 pm
Forum: Investing - Theory, News & General
Topic: TSP's F Fund outperforms the G Fund, so why is the G Fund favored?
Replies: 34
Views: 2254

Re: TSP's F Fund outperforms the G Fund, so why is the G Fund favored?

I just don't see the relevance in comparing widely accepted means of estimating bond return to what actually happened in the past. So if what actually happened doesn't match up with the expected return (e.g. F greatly outperformed G when the yields were always pretty close), then that only proves t...
by rkhusky
Fri Jan 19, 2018 2:26 pm
Forum: Investing - Help with Personal Investments
Topic: Fidelity Freedom 2020 vs Vanguard Index Funds?
Replies: 16
Views: 1117

Re: Fidelity Freedom 2020 vs Vanguard Index Funds?

Can anyone please comment on the Fidelity target ["freedom"] index funds vs. the Vanguard equivalents? Do they both have pluses and minuses such that it pays to own both? A glance seems to show that Fidelity has more international stocks and bonds. Thank you. Vanguard has 40% Int'l versus Fidelity'...
by rkhusky
Fri Jan 19, 2018 12:39 pm
Forum: Investing - Theory, News & General
Topic: TSP's F Fund outperforms the G Fund, so why is the G Fund favored?
Replies: 34
Views: 2254

Re: TSP's F Fund outperforms the G Fund, so why is the G Fund favored?

You're talking about actual performance, whereas I was discussing expected performance. The generally accepted method of estimating a bond's return is its current yield minus an estimate of default rate to the extent that defaults are expected or possible. Defaults should be 0 for G fund and very n...
by rkhusky
Fri Jan 19, 2018 7:58 am
Forum: Personal Finance (Not Investing)
Topic: Paying semi-illiterate vendor via credit card who has no email or computer
Replies: 23
Views: 1769

Re: Paying semi-illiterate vendor via credit card who has no email or computer

Also, it looks like Plastiq assesses an approximately 2.5% fee on the person who transmits the payment. That's not a dealbreaker in the gov't. Often, in order to get things on contract, officials will pay a 4-5% overhead fee to a business with an existing contract, in order to pay a contractor with...
by rkhusky
Thu Jan 18, 2018 3:50 pm
Forum: Investing - Theory, News & General
Topic: TSP's F Fund outperforms the G Fund, so why is the G Fund favored?
Replies: 34
Views: 2254

Re: TSP's F Fund outperforms the G Fund, so why is the G Fund favored?

Here's my way of thinking of it. The G fund current yield is 2.375% and has zero risk/zero duration (Source: https://www.tspfolio.com/tspgfundinterestrate). The F Fund yield is/should be ~ 2.62% (source: 30-day yield on VBTLX). So why would you take 6.x years of duration risk, and credit risk (~ 31...
by rkhusky
Thu Jan 18, 2018 1:52 pm
Forum: Investing - Help with Personal Investments
Topic: Rebalancing bands tighter than 5 / 25?
Replies: 17
Views: 1122

Re: Rebalancing bands tighter than 5 / 25?

You might also might want to look at: http://www.wsfaonline.com/resources/Opportunistic_Rebalancing_JFP2007_Daryanani.pdf which looks at various rebalancing bands and I believe recommends 20 percent. I read this over this morning, interesting. One thing about his study is that he assumes a $20 cost...
by rkhusky
Thu Jan 18, 2018 1:32 pm
Forum: Investing - Theory, News & General
Topic: 0% growth on stocks for the next decade?
Replies: 16
Views: 1919

Re: 0% growth on stocks for the next decade?

Bogle probably didn't foresee the Trump tax cuts. On the other hand, perhaps there will be a big correction in 2-3 years and he will turn out to be right, on average, after all.
by rkhusky
Thu Jan 18, 2018 8:08 am
Forum: Investing - Theory, News & General
Topic: TSP's F Fund outperforms the G Fund, so why is the G Fund favored?
Replies: 34
Views: 2254

Re: TSP's F Fund outperforms the G Fund, so why is the G Fund favored?

I think it is worthwhile to have more of the F Fund early in your career in order to allow the small return advantage that it has had over the G Fund to compound. As you get closer to retirement and you prepare to start to withdraw, you may want to increase the proportion to the G Fund because of it...
by rkhusky
Thu Jan 18, 2018 7:59 am
Forum: Personal Finance (Not Investing)
Topic: Federal pension Vs Higher salary + 401k savings plan
Replies: 32
Views: 2749

Re: Federal pension Vs Higher salary + 401k savings plan

Jags4186 wrote:
Thu Jan 18, 2018 7:30 am
Also, if it’s like away from extended family thats 1 thing, I wouldn’t leave my wife and kids for 2-3 years for a $100k job.
I wouldn't either, but most in the military do so for less pay than that.
by rkhusky
Wed Jan 17, 2018 8:28 pm
Forum: Investing - Theory, News & General
Topic: [n X expenses + r] instead of [n X expenses]
Replies: 27
Views: 1084

Re: [n X expenses + r] instead of [n X expenses]

If you have the "r" you don't need as much "n", because "n" is usually computed to take into account bad spells in the market. So, instead of 25X, perhaps you can do 22X + $100K.
by rkhusky
Wed Jan 17, 2018 4:43 pm
Forum: Personal Finance (Not Investing)
Topic: Federal pension Vs Higher salary + 401k savings plan
Replies: 32
Views: 2749

Re: Federal pension Vs Higher salary + 401k savings plan

Option#1: A relatively stable executive job in the federal government , with reasonable pay (over 100k), and comes with excellent pension benefits. Almost 50% of my last 3 yrs pay (it will be easily over $200k), so the lifetime pension will be nearly 100k per year. The standard federal pension prov...
by rkhusky
Wed Jan 17, 2018 2:53 pm
Forum: Investing - Help with Personal Investments
Topic: Withdrawals from Index Funds and Taxes
Replies: 3
Views: 422

Re: Withdrawals from Index Funds and Taxes

If I understand this correctly, The contributions and long term gains will be tax free and the short term (2%) will be taxed at my normal tax rate. Is that correct? Contributions are tax free, but you can't just pull those out without the gains. As long as the combination of income + cap gains rema...
by rkhusky
Wed Jan 17, 2018 1:10 pm
Forum: Investing - Help with Personal Investments
Topic: Rebalancing bands tighter than 5 / 25?
Replies: 17
Views: 1122

Re: Rebalancing bands tighter than 5 / 25?

For me, checking to see if I need to rebalance takes more time than the actual rebalancing. Since I check every two weeks when I get a paycheck, I see no reason not to rebalance if the AA is off by a sufficient amount, generally 1-2% absolute. I'm not looking for a rebalancing bonus, I just don't li...
by rkhusky
Wed Jan 17, 2018 10:54 am
Forum: Personal Finance (Not Investing)
Topic: Roth 401(k) vs Traditional 401(k) contributions in 2018
Replies: 8
Views: 560

Re: Roth 401(k) vs Traditional 401(k) contributions in 2018

I would definitely put at least enough in Traditional to get into the 24% bracket. Let's suppose your pension is $100K and that you take the pension at 59.5, which puts you just below the 22% boundary with the $24K standard deduction. You could then withdraw $90K/yr from Traditional and stay in the ...
by rkhusky
Wed Jan 17, 2018 8:45 am
Forum: Investing - Help with Personal Investments
Topic: Newbie wanting to INVEST!
Replies: 26
Views: 1722

Re: Newbie wanting to INVEST!

Thanks for that. Both seem to be good "set it and forget it" type of investments if I'm not mistaken. Most people would not consider the Total US market as a set it and forget it fund by itself, since it doesn't have bonds or international stocks. There are those who advocate for 100% stock, even i...
by rkhusky
Wed Jan 17, 2018 8:37 am
Forum: Personal Finance (Not Investing)
Topic: Roth 401(k) vs Traditional 401(k) contributions in 2018
Replies: 8
Views: 560

Re: Roth 401(k) vs Traditional 401(k) contributions in 2018

Do you plan to retire before 70? If so, you could convert some of the Traditional funds to Roth while you are in a lower tax bracket.
by rkhusky
Tue Jan 16, 2018 9:15 pm
Forum: Investing - Help with Personal Investments
Topic: Newbie wanting to INVEST!
Replies: 26
Views: 1722

Re: Newbie wanting to INVEST!

Sorry for all of the Schwab questions... I have been there for a while, and do most of my research there as I plan to bank with them. Is there a major differenc between a target date fund such as the https://www.schwab.com/public/schwab/investing/investment_help/investment_research/mutual_fund_rese...
by rkhusky
Tue Jan 16, 2018 9:05 pm
Forum: Personal Finance (Not Investing)
Topic: Vanguard Tax Forms Now Online
Replies: 39
Views: 2509

Re: Vanguard Tax Forms Now Online

You can find the state breakdown of tax exempt muni income here:
https://advisors.vanguard.com/VGApp/iip ... rationData
by rkhusky
Tue Jan 16, 2018 7:09 pm
Forum: Personal Finance (Not Investing)
Topic: Vanguard Tax Forms Now Online
Replies: 39
Views: 2509

Re: Vanguard Tax Forms Now Online

Just got my 1099. Qualified dividends for Total Stock, Mid Cap and Small Cap are 94.78%, 87.18%, 65.72%, respectively. This compares to Vanguard's estimates of 94%, 89%, 71%, respectively.
by rkhusky
Tue Jan 16, 2018 4:47 pm
Forum: Investing - Help with Personal Investments
Topic: Newbie wanting to INVEST!
Replies: 26
Views: 1722

Re: Newbie wanting to INVEST!

Take a look at the options in your tax deferred options at work. Look for a target date fund, something with 2040 - 2050 in the name. If the expenses are less than 0.2%, that is a very good option. If the expenses are 0.5% or less, than it is still an okay option. A target date fund is the easiest w...
by rkhusky
Tue Jan 16, 2018 4:24 pm
Forum: Investing - Help with Personal Investments
Topic: AA mix vs paycheck mix percentages
Replies: 12
Views: 522

Re: AA mix vs paycheck mix percentages

Okay I get it but just for the sake of it, if I'm AA looks like this Vanguard 500 index: 48% Vanguard Extended: 12% Vanguard tot bond: 20% Vanguard tot international: 20% I would want the same % from paycheck to go to these funds, correct? Ex: $100 from pay check 48% of that would go to the 500 Tha...
by rkhusky
Tue Jan 16, 2018 4:19 pm
Forum: Investing - Help with Personal Investments
Topic: Vanguard Index Fund Order Timing
Replies: 3
Views: 292

Re: Vanguard Index Fund Order Timing

RRAAYY3 wrote:
Tue Jan 16, 2018 3:22 pm
4PM EST

If you buy on a weekend / holiday / after 4PM , you will get the next business day's closing price
Except in the summer (and part of the spring and fall), then it is 4PM EDT.
by rkhusky
Tue Jan 16, 2018 4:07 pm
Forum: Personal Finance (Not Investing)
Topic: W2 Vs Last Pay Stub
Replies: 6
Views: 1123

Re: W2 Vs Last Pay Stub

I don't like putting place holders in the tax software. It leaves you open to errors by forgetting to go back and change something that is marked complete. That is so true. That''s why I have a separate file (tax return) saved as "2017Estimate" and my real tax return in another file. Not a bad idea...
by rkhusky
Tue Jan 16, 2018 2:43 pm
Forum: Investing - Help with Personal Investments
Topic: Target Retirement Funds
Replies: 15
Views: 2027

Re: Target Retirement Funds

Much of the above is predicated on assumptions that your fund expenses are what is found on the web. If your 401K has additional fees, especially non-uniform fees, in addition to the base fund fees, then the answers may be different.
by rkhusky
Tue Jan 16, 2018 2:29 pm
Forum: Investing - Theory, News & General
Topic: rebalancing
Replies: 5
Views: 392

Re: rebalancing

Use a muni bond fund if you have to rebalance in a taxable account and are worried about taxation of dividends.
by rkhusky
Tue Jan 16, 2018 2:03 pm
Forum: Investing - Help with Personal Investments
Topic: Bond Allocation with TSP G/F Funds
Replies: 10
Views: 684

Re: Bond Allocation with TSP G/F Funds

The issues are tax efficiency and ease of rebalancing. Since you will be taxed on tax deferred accounts when withdrawing, all else being equal, it makes sense to put your investments with lowest expected return here. Since there are no taxes for withdrawing from a Roth account, it makes sense to put...
by rkhusky
Tue Jan 16, 2018 8:27 am
Forum: Investing - Help with Personal Investments
Topic: Target Retirement Funds
Replies: 15
Views: 2027

Re: Target Retirement Funds

Hello. I currently hold two 401k investments: - Vanguard Target Retirement 2030 Fund (VTHRX) - Schwab Target 2030 SWDRX Straightforward question: Are these good choices? What is your opinion of target funds in general; and these specifically? Vanguard TR funds are a great choice. The Schwab fund ha...
by rkhusky
Tue Jan 16, 2018 8:01 am
Forum: Personal Finance (Not Investing)
Topic: 2018 Withholding Tables
Replies: 88
Views: 11095

Re: IRS announces new withholding tables for 2018

My employer claims that the W-4 filled out for 2017 "expires" in February 2018. They are telling everyone "Give us a new W-4 by February 15, 2018 or we will change your exemption status to single with 0 dependents." I assume you can still fill out as many W-4s as needed over the course of the year,...
by rkhusky
Tue Jan 16, 2018 7:53 am
Forum: Personal Finance (Not Investing)
Topic: 2018 Withholding Tables
Replies: 88
Views: 11095

Re: 2018 Withholding Tables

The Federal 2018 tax brackets have been released: https://www.irs.gov/pub/irs-pdf/n1036.pdf Link is now broken - I am getting a page not found message. I even went to irs.gov and typed in "2018 withholding". I guess I'll try later. New link is the following: https://www.irs.gov/pub/irs-prior/n1036-...
by rkhusky
Mon Jan 15, 2018 4:48 pm
Forum: Personal Consumer Issues
Topic: Will IRS make paper tax forms available?
Replies: 23
Views: 1402

Re: Will IRS make paper tax forms available?

It's not surprising that the paper forms aren't available yet, since the 2017 pdf's are just now showing up on the web site.
by rkhusky
Sat Jan 13, 2018 4:51 pm
Forum: Personal Finance (Not Investing)
Topic: 2018 Withholding Tables
Replies: 88
Views: 11095

Re: IRS announces new withholding tables for 2018

pfrank wrote:
Sat Jan 13, 2018 9:27 am
Use this link instead: https://www.irs.gov/pub/irs-prior/n1036--2018.pdf
New file size is quite a bit smaller, but seems to have the same info.
by rkhusky
Sat Jan 13, 2018 12:04 pm
Forum: Investing - Help with Personal Investments
Topic: Rebalancing out of target funds?
Replies: 8
Views: 757

Re: Rebalancing out of target funds?

I read the wiki page so what I am getting is this: Total international stock index is most optimally placed in taxable, total bond index is most optimally placed in pre-tax Ira, and total us stock index is most optimally placed in Roth IRA. Does that about sum it up? I noticed a few of you suggeste...
by rkhusky
Fri Jan 12, 2018 5:22 pm
Forum: Personal Consumer Issues
Topic: AirBnB my Van?
Replies: 29
Views: 2629

Re: AirBnB my Van?

emanuel_v19 wrote:
Fri Jan 12, 2018 5:14 pm
Or are there other forms or ways I can rent it without using AirBnB?
Craigslist.

If the van is actually a motorhome, there are ways to rent that out. I imagine AirBnB has some minimum standards, such as running water and a toilet.
by rkhusky
Fri Jan 12, 2018 12:38 pm
Forum: Investing - Help with Personal Investments
Topic: Percentage of VWITX subject to AMT
Replies: 8
Views: 329

Re: Percentage of VWITX subject to AMT

VWITX hasn't had PAB's for as long as I've owned it. The High Yield Tax Exempt had some. I agree that this is the party line; and yet, the prospectus indicates that "Up to 20% of each Fund’s assets may be invested in securities that are subject to the alternative minimum tax." Is Vanguard providing...
by rkhusky
Fri Jan 12, 2018 10:14 am
Forum: Personal Finance (Not Investing)
Topic: 2018 Lower Taxes and Higher Marginal Rate for those with children
Replies: 1
Views: 391

2018 Lower Taxes and Higher Marginal Rate for those with children

Regarding tax planning for 2018, are those with children aware of the potential that, although their taxes may be going down, their marginal rates may be going up? This might affect decisions such as Roth vs Traditional, capital gain/loss harvesting, size of IRA/401K contributions, etc. The reason f...
by rkhusky
Fri Jan 12, 2018 9:58 am
Forum: Investing - Help with Personal Investments
Topic: Percentage of VWITX subject to AMT
Replies: 8
Views: 329

Re: Percentage of VWITX subject to AMT

VWITX hasn't had PAB's for as long as I've owned it. The High Yield Tax Exempt had some.
by rkhusky
Thu Jan 11, 2018 2:30 pm
Forum: Personal Finance (Not Investing)
Topic: 2018 Withholding Tables
Replies: 88
Views: 11095

2018 Withholding Tables

The Federal 2018 tax brackets have been released:
https://www.irs.gov/pub/irs-pdf/n1036.pdf

edit: New link is: https://www.irs.gov/pub/irs-prior/n1036--2018.pdf
by rkhusky
Thu Jan 11, 2018 10:09 am
Forum: Investing - Help with Personal Investments
Topic: VT Total World Stock ETF and the Foreign Tax Credit Pinch Out
Replies: 12
Views: 1614

Re: VT Total World Stock ETF and the Foreign Tax Credit Pinch Out

How significant is foreign tax credit if I invested $20,000 in vxus? Before the decent run-up in VXUS, back towards the end of 2016, I was trying to find out how much I could put in it without having to deal with form 1116 for a single filer. It was a hair below 150k invested at that point in time....