Search found 5124 matches

by rkhusky
Fri May 25, 2018 7:06 am
Forum: Investing - Help with Personal Investments
Topic: Should I open a traditional IRA for bond allocation?
Replies: 14
Views: 481

Re: Should I open a traditional IRA for bond allocation?

Put stocks in taxable and and stocks and bonds in your Roth. Or just go all stocks for now. Make sure that you can deduct a Traditional IRA contribution. If not, continue to use Roth. If you can deduct the Traditional contributions, see https://www.bogleheads.org/wiki/Traditional_versus_Roth, to hel...
by rkhusky
Thu May 24, 2018 6:35 am
Forum: Investing - Help with Personal Investments
Topic: Worth opening a 529?
Replies: 5
Views: 584

Re: Worth opening a 529?

But from what I am hearing, I can open a PA 529 and deduct the state taxes, even if I then withdraw the money this year as well. You should check your state tax forms to see how they handle contributions and withdrawals. For example, my state (not PA) has the following language: You may deduct, to ...
by rkhusky
Wed May 23, 2018 8:47 pm
Forum: Investing - Help with Personal Investments
Topic: Which Roth IRA and Roth 401-k assets for dividend income
Replies: 9
Views: 363

Re: Which Roth IRA and Roth 401-k assets for dividend income

Most here are more concerned with total return, i.e. dividends + capital gain. A Vanguard Target Retirement fund or a Lifestrategy fund is fully diversified. It has thousands of US and Int'l stocks and thousands of US and Int'l bonds. The main difference between the two is that the TR funds slowly s...
by rkhusky
Wed May 23, 2018 9:27 am
Forum: Personal Finance (Not Investing)
Topic: Can I max out TSP and do a traditional IRA?
Replies: 8
Views: 656

Re: Can I max out TSP and do a traditional IRA?

I get a different number from $400 though. I get $2,900. I admit I've never file form 8880 before, but the calculations look fairly easy. Line 6 is the smaller of contributions or $2000 for each ($2000 each for OP). Line 7 adds the two together ($4000 for OP). Line 9 is the percent (0.1 for the OP)...
by rkhusky
Wed May 23, 2018 7:00 am
Forum: Investing - Theory, News & General
Topic: Typical interest rate earned by target date funds in retirement?
Replies: 28
Views: 1843

Re: Typical interest rate earned by target date funds in retirement?

Based on all the work done on safe withdrawal rates and corresponding AA, Vanguard and other target date fund providers definitely seem to be catering to the risk-averse crowd with their terminal AA. Historic success rates for the '4% rule' have been highest with higher stock allocations, usually i...
by rkhusky
Wed May 23, 2018 6:40 am
Forum: Personal Finance (Not Investing)
Topic: Can I max out TSP and do a traditional IRA?
Replies: 8
Views: 656

Re: Can I max out TSP and do a traditional IRA?

Via the Savers Credit, you can get back 10% of each of your retirement contributions (max of $2K each) if your AGI is between $41K and $63K. So, in terms of the Savers Credit, you will get back $400 whether you use Traditional or Roth IRA.
by rkhusky
Tue May 22, 2018 8:54 pm
Forum: Investing - Theory, News & General
Topic: Typical interest rate earned by target date funds in retirement?
Replies: 28
Views: 1843

Re: Typical interest rate earned by target date funds in retirement?

Based on all the work done on safe withdrawal rates and corresponding AA, Vanguard and other target date fund providers definitely seem to be catering to the risk-averse crowd with their terminal AA. Historic success rates for the '4% rule' have been highest with higher stock allocations, usually i...
by rkhusky
Tue May 22, 2018 8:45 pm
Forum: Investing - Help with Personal Investments
Topic: All else aside - General Allocation Thoughts
Replies: 9
Views: 657

Re: All else aside - General Allocation Thoughts

Either is fine. Returns are too noisy to be able to differentiate your two allocations. You'll do best to pick one and stick with it, apart from any stock/bond glide path that you might employ.
by rkhusky
Tue May 22, 2018 3:02 pm
Forum: Investing - Help with Personal Investments
Topic: Same funds within IRA and Taxable
Replies: 26
Views: 1682

Re: Same funds within IRA and Taxable

The fact that the IRS has not directly addressed 401(k)'s does bring some doubt. However, with the text as given, the inclusion of 401(k)'s in wash sale rules is on stronger footing than not including them. So you think they felt it important to issue a revenue ruling that specifically discussed IR...
by rkhusky
Tue May 22, 2018 11:10 am
Forum: Investing - Help with Personal Investments
Topic: Same funds within IRA and Taxable
Replies: 26
Views: 1682

Re: Same funds within IRA and Taxable

However, purchases in a 401k can trigger a wash sale in a taxable account. Are you sure? I don't believe such a ruling that has been brought to our attention here. Or an example that it has happened. In fact, when the IRS did issue a clarification regarding IRAs and spouse's IRAs and wash sales, th...
by rkhusky
Tue May 22, 2018 11:00 am
Forum: Investing - Help with Personal Investments
Topic: Same funds within IRA and Taxable
Replies: 26
Views: 1682

Re: Same funds within IRA and Taxable

However, purchases in a 401k can trigger a wash sale in a taxable account. Not at all likely. One section of the tax code says that a wash sale occurs whenever you buy substantially identical replacements for shares sold at a loss in a taxable account within +-30 days. Another section says that a w...
by rkhusky
Tue May 22, 2018 10:42 am
Forum: Investing - Theory, News & General
Topic: Typical interest rate earned by target date funds in retirement?
Replies: 28
Views: 1843

Re: Typical interest rate earned by target date funds in retirement?

Note that Vanguard's terminal allocation for retirement is 30/70 stock/bond, as is the Fidelity Freedom Index fund, although the latter takes longer to get there. TIAA Lifecycle funds level off at 40/60. The Government's TSP plan levels off at 20/80. I suggest that 30/70 - 50/50 is a more appropriat...
by rkhusky
Mon May 21, 2018 3:58 pm
Forum: Investing - Help with Personal Investments
Topic: Same funds within IRA and Taxable
Replies: 26
Views: 1682

Re: Same funds within IRA and Taxable

And that it doesn’t exist between 401k and Roth. True, since wash sales only occur in a taxable account. However, purchases in a 401k can trigger a wash sale in a taxable account. One section of the tax code says that a wash sale occurs whenever you buy substantially identical replacements for shar...
by rkhusky
Mon May 21, 2018 6:55 am
Forum: Personal Consumer Issues
Topic: Older iPhone text msgs disappear
Replies: 25
Views: 1069

Re: Older iPhone text msgs disappear

I presume you also Google'd the issue to see if anyone on the Internet has posted a similar experience? And I understand about liking a physical keyboard like the BB. I've mostly gotten used to the touchscreen, but sometimes it can be quite frustrating.
by rkhusky
Sun May 20, 2018 10:13 pm
Forum: Investing - Help with Personal Investments
Topic: When to and when not to “reinvest dividend and capital gains”
Replies: 24
Views: 2244

Re: When to and when not to “reinvest dividend and capital gains”

Keep in mind that when a mutual fund issues stock dividends and capital gains, the stock price goes down, such that you end up with the same amount of money as before the dividend or cap gain was issued. So there is no compounding in the sense of a bank account.
by rkhusky
Sun May 20, 2018 6:45 am
Forum: Investing - Help with Personal Investments
Topic: Why is my after tax contribution showing up a penny less?
Replies: 6
Views: 611

Re: Why is my after tax contribution showing up a penny less?

It depends on how many significant figures to the right of the decimal point are stored for the number of shares you own. The price is given only to the nearest cent. With enough significant figures in the number of shares, there would not be a rounding error to the nearest cent.
by rkhusky
Sat May 19, 2018 7:03 am
Forum: Investing - Help with Personal Investments
Topic: TSP->Roth IRA conversion
Replies: 6
Views: 666

Re: TSP->Roth IRA conversion

TSP and IRA's are both retirement accounts and so should be treated the same in terms of assets. For the 2018-19 application, you use the student's and parents' 2016 tax returns. The form asks for AGI, where a Roth conversion would enter, and earnings, where it would not, along with untaxed income, ...
by rkhusky
Sat May 19, 2018 6:45 am
Forum: Investing - Help with Personal Investments
Topic: Open a Roth IRA
Replies: 1
Views: 205

Re: Open a Roth IRA

It is a sweep account. See https://www.bogleheads.org/forum/viewtopic.php?t=240386 Also see: https://personal.vanguard.com/us/help/FAQBrokerageAcctWorkingsContent.jsp As soon as the money is available, you can move it. I have one, but have never seen any money in it. Perhaps it is because I also hav...
by rkhusky
Fri May 18, 2018 10:18 am
Forum: Investing - Theory, News & General
Topic: Why do so many people quote "You will likely be in a lower tax bracket in retirement"
Replies: 455
Views: 23004

Re: Why do so many people quote "You will likely be in a lower tax bracket in retirement"

LOL, I meant after the fact/after taxes are paid. Let's say you're doing so well, you have $24,000 to save for retirement (assume taxes for that year paid), and your savings options are a $18.500 Roth/Traditional from your employer and a $5,500 Roth/Traditional IRA. Regardless of your tax rate, sur...
by rkhusky
Fri May 18, 2018 6:41 am
Forum: Personal Consumer Issues
Topic: Chase CS playing games w/me
Replies: 28
Views: 2722

Re: Chase CS playing games w/me

If they are doing true continuous or even daily compounding of interest, then it doesn't matter. What you have is a Mortgage Balance that grows slightly each day. And the next payment of any amount reduces the current Mortgage Balance by exactly that amount. But you want to verify that they are doi...
by rkhusky
Thu May 17, 2018 10:04 am
Forum: Investing - Theory, News & General
Topic: Why do so many people quote "You will likely be in a lower tax bracket in retirement"
Replies: 455
Views: 23004

Re: Why do so many people quote "You will likely be in a lower tax bracket in retirement"

I had a 30% marginal rate while working. Using a Traditional 401K allowed me to max Roth IRA and contribute to taxable and 529. I expect to spend the next 15 years doing Roth conversions and tax gain harvesting, such that by 70 I will have very little Traditional left and very little capital gains ...
by rkhusky
Thu May 17, 2018 9:56 am
Forum: Personal Finance (Not Investing)
Topic: Question for Federal Govt Retirees
Replies: 20
Views: 1297

Re: Question for Federal Govt Retirees

trueblueky wrote:
Wed May 16, 2018 3:03 pm
-- but remember that the health insurance will no longer be pretax
Hadn't heard that before.
trueblueky wrote:
Wed May 16, 2018 3:08 pm
Another caveat on delayed pension is that there is no inflation protection during the years of delay.
There is no pension COLA until you are 62, whether you delay or not.
by rkhusky
Wed May 16, 2018 9:15 pm
Forum: Investing - Help with Personal Investments
Topic: Best option to max out 401k (Roth vs Traditional)
Replies: 8
Views: 1020

Re: Best option to max out 401k (Roth vs Traditional)

Yes, if you are maxing all available tax-advantaged accounts (401k, IRA, etc) and the tax rate you would pay for Roth contributions now is the same as the tax rate you would pay for Traditional withdrawals in retirement, then Roth does have a slight advantage. This is because, once you've maxed all...
by rkhusky
Wed May 16, 2018 9:06 pm
Forum: Investing - Theory, News & General
Topic: Why do so many people quote "You will likely be in a lower tax bracket in retirement"
Replies: 455
Views: 23004

Re: Why do so many people quote "You will likely be in a lower tax bracket in retirement"

I had a 30% marginal rate while working. Using a Traditional 401K allowed me to max Roth IRA and contribute to taxable and 529. I expect to spend the next 15 years doing Roth conversions and tax gain harvesting, such that by 70 I will have very little Traditional left and very little capital gains i...
by rkhusky
Wed May 16, 2018 7:35 am
Forum: Investing - Help with Personal Investments
Topic: Wisconsin 529
Replies: 3
Views: 399

Re: Wisconsin 529

There is not much difference between the Age-Based and Aggressive Age-based, but I would lean towards the Age-Based, especially after age 15 or so (because I am on the conservative side). The fees for the Index-Based funds are less than Age-Based, so if you don't mind handling the glide path yoursel...
by rkhusky
Wed May 16, 2018 6:58 am
Forum: Investing - Help with Personal Investments
Topic: Rollover beneficiary TSP to IRA?
Replies: 9
Views: 581

Re: Rollover beneficiary TSP to IRA?

You could keep a small amount in the G Fund in the TSP, such that your children would not face a large tax bill, such as $50K or $100K. It depends in which tax bracket they are currently.
by rkhusky
Wed May 16, 2018 6:42 am
Forum: Investing - Help with Personal Investments
Topic: Fellow non-529ers
Replies: 43
Views: 2868

Re: Fellow non-529ers

Put equities in taxable. If market is down during college years, still pay for college from taxable and rebalance in tax-advantaged.
by rkhusky
Tue May 15, 2018 12:58 pm
Forum: Investing - Help with Personal Investments
Topic: Bond Fund in Taxable
Replies: 5
Views: 720

Re: Bond Fund in Taxable

The three most important things to look for in a bond fund are the expense ratio, average duration (or duration distribution), and the average credit quality (or credit distribution). The duration will give you an idea of how much the fund will fall when interest rates rise. The credit quality will ...
by rkhusky
Tue May 15, 2018 10:05 am
Forum: Investing - Help with Personal Investments
Topic: Where to invest after maxing out retirement?
Replies: 21
Views: 1751

Re: Where to invest after maxing out retirement?

https://www.bogleheads.org/wiki/Prioritizing_investments Thanks, interesting that taxable came before nondeductible IRAs, but I can see why that would be the case. If you are maxing a Roth IRA, you can't contribute to a nondeductible Traditional IRA anyway. The yearly cap applies to the combination...
by rkhusky
Tue May 15, 2018 6:33 am
Forum: Investing - Help with Personal Investments
Topic: recommend funds to invest in 2018
Replies: 2
Views: 450

Re: recommend funds to invest in 2018

8-10 years is not long term, probably intermediate term. 20-30 years is long term. But below are several all-in-one-fund suggestions that include a stock portion. One can be more conservative by choosing an all-bond, money market, or CD portfolio. From most conservative to less conservative: Vanguar...
by rkhusky
Tue May 15, 2018 6:21 am
Forum: Investing - Help with Personal Investments
Topic: Bond Fund in Taxable
Replies: 5
Views: 720

Re: Bond Fund in Taxable

If you want a Schwab fund, then take a look at Schwab Tax-Free Bond (SWNTX). It has a broad spectrum of tax-free bonds, but its expense ratio is 0.49%, which is high compared to Vanguard.
by rkhusky
Sat May 12, 2018 1:39 pm
Forum: Investing - Help with Personal Investments
Topic: TR2015 in a taxable account
Replies: 9
Views: 703

Re: TR2015 in a taxable account

In the 12% tax bracket, it doesn't make a lot of difference in terms of taxes whether you hold TR2015 or the individual funds. However, selling it all at once may cause an increase in taxes if your other total income is more than $35K, due to the $65K in capital gains your would incur. The expense d...
by rkhusky
Sat May 12, 2018 6:59 am
Forum: Investing - Help with Personal Investments
Topic: Living off Dividends of Vanguard Total Stock
Replies: 49
Views: 6494

Re: Living off Dividends of Vanguard Total Stock

JustinR wrote:
Sat May 12, 2018 2:48 am
Dividends are literally the same thing as selling shares of the stock yourself.
For Vanguard Total Stock Market, that's close to true because 95% of the dividends are qualified. However, it's not true for every fund. Non-qualified dividends are taxed differently than capital gains.
by rkhusky
Sat May 12, 2018 6:51 am
Forum: Investing - Theory, News & General
Topic: Anything wrong with too many lots?
Replies: 47
Views: 4680

Re: Anything wrong with too many lots?

I don't reinvest dividends in my taxable accounts because I like to keep track of the transactions myself and I don't want all the small lots. Plus, in the past, I've used the taxable dividends for other things, like bumping up my emergency fund or contributing to my Roth. Now I might use them for l...
by rkhusky
Fri May 11, 2018 6:15 pm
Forum: Investing - Help with Personal Investments
Topic: TLH questions
Replies: 12
Views: 654

Re: TLH questions

Question 2: In perusing the wiki, I see there are some complications when the losses involve tax-exempt interest-producing investments such as VTEB. These complications can be entirely avoided as long as I have held these shares at least 6 months right? This is true because, according to the prospe...
by rkhusky
Fri May 11, 2018 5:32 pm
Forum: Personal Consumer Issues
Topic: Reccommended Minivans
Replies: 31
Views: 1828

Re: Reccommended Minivans

You can get a new mid-grade Dodge Grand Caravan for under $25K, along with a lifetime bumper-to-bumper warranty for $3-4K (actually from Mopar, OEM for Dodge). Hard to beat that if you plan to keep the vehicle for 15 years.
by rkhusky
Fri May 11, 2018 7:12 am
Forum: Investing - Help with Personal Investments
Topic: Best option to max out 401k (Roth vs Traditional)
Replies: 8
Views: 1020

Re: Best option to max out 401k (Roth vs Traditional)

Reading about the difference between Roth 401k vs Traditional 401k. Do I understand correctly, that 18500 limit is after tax (for Roth), so I can invest 18500 + 25% (example tax bracket) into Roth vs just 18500 in traditional 401k. Assuming that tax bracket will be the same in the future as now, si...
by rkhusky
Fri May 11, 2018 6:59 am
Forum: Investing - Help with Personal Investments
Topic: Using Vanguard Wellesley for Emergency Fund $30k, reinvest dividends in taxable???
Replies: 9
Views: 1388

Re: Using Vanguard Wellesley for Emergency Fund $30k, reinvest dividends in taxable???

I would not use Wellesley in a taxable account - too tax inefficient. And I prefer sending dividends to a sweep account until there is enough to make a significant contribution (my taxable funds haven’t generated cap gains in years, which is one reason for using them). It's more tax efficient than ...
by rkhusky
Fri May 11, 2018 6:32 am
Forum: Investing - Help with Personal Investments
Topic: Traditional or Roth TSP with New Tax Brackets?
Replies: 17
Views: 1053

Re: Traditional or Roth TSP with New Tax Brackets?

The OP should really estimate what his pension will be and when he will start collecting it. Also make an estimate of SS for him and his wife. And he needs to know what bracket he is in currently and what bracket he expects to be in going forward. Right now, he is contributing about 50/50 to Roth an...
by rkhusky
Thu May 10, 2018 9:57 pm
Forum: Investing - Help with Personal Investments
Topic: Using Vanguard Wellesley for Emergency Fund $30k, reinvest dividends in taxable???
Replies: 9
Views: 1388

Re: Using Vanguard Wellesley for Emergency Fund $30k, reinvest dividends in taxable???

I would not use Wellesley in a taxable account - too tax inefficient. And I prefer sending dividends to a sweep account until there is enough to make a significant contribution (my taxable funds haven’t generated cap gains in years, which is one reason for using them).
by rkhusky
Thu May 10, 2018 6:52 am
Forum: Investing - Help with Personal Investments
Topic: Should I sell Small Cap Value Fund and move it into Roth?
Replies: 23
Views: 1905

Re: Should I sell Small Cap Value Fund and move it into Roth?

venkman wrote:
Wed May 09, 2018 11:21 pm
You just can't claim a capital loss on the sold shares; you have to apply it to the cost basis on your new shares.
But note that if the replacement share are within an IRA, you lose the value of the capital loss, because you cannot add cost basis to shares within an IRA.
by rkhusky
Thu May 10, 2018 6:45 am
Forum: Investing - Help with Personal Investments
Topic: Should I sell Small Cap Value Fund and move it into Roth?
Replies: 23
Views: 1905

Re: Should I sell Small Cap Value Fund and move it into Roth?

So if I don’t sell my Small cap value fund (the one outside tax sheltered) then I wouldn’t even have to consider experiencing a wash sale when I buy the ETF in my Roth, right? Right. If you never sell the fund (neither the initial purchase nor any reinvested dividends), there will never be a loss a...
by rkhusky
Thu May 10, 2018 6:41 am
Forum: Investing - Help with Personal Investments
Topic: Should I sell Small Cap Value Fund and move it into Roth?
Replies: 23
Views: 1905

Re: Should I sell Small Cap Value Fund and move it into Roth?

I want to shift FUND A's allocation from my Roth to Taxable, to make room for more tax inefficient funds in the Roth. So I sell all of FUND A in my Roth, and buy it back in my taxable account. Is that a wash sale? I'm not even keeping track of cost basis in my Roth since it usually doesn't matter.....
by rkhusky
Wed May 09, 2018 8:48 pm
Forum: Investing - Help with Personal Investments
Topic: Estimated Tax on Large Capital Gain
Replies: 34
Views: 2013

Re: Estimated Tax on Large Capital Gain

Yes, but the safe harbor rule is based on the prior year’s AGI. GILL Right. Thanks. Actually, the $150,000 test is based on the filing year, not prior year. SO if he makes more than $150k in 2018 (which it appears he will), he will be subject to the higher test of 110%. The Pub 505 link above indic...
by rkhusky
Wed May 09, 2018 8:39 pm
Forum: Investing - Help with Personal Investments
Topic: Estimated Tax on Large Capital Gain
Replies: 34
Views: 2013

Re: Estimated Tax on Large Capital Gain

Gill wrote:
Wed May 09, 2018 8:36 pm
Yes, but the safe harbor rule is based on the prior year’s AGI.
GILL
Right. Thanks.
by rkhusky
Wed May 09, 2018 8:34 pm
Forum: Investing - Help with Personal Investments
Topic: Estimated Tax on Large Capital Gain
Replies: 34
Views: 2013

Re: Estimated Tax on Large Capital Gain

Thank you, corn18. Reaffirming my response to the OP, just make sure your withholding equals or exceeds 2017 and you have fully complied with any obligation to pay additional tax until April 2019. Gill Special case for high earners. If AGI is greater than $150,000, then you must pay the lesser of: ...
by rkhusky
Wed May 09, 2018 7:07 pm
Forum: Investing - Help with Personal Investments
Topic: Small Cap
Replies: 11
Views: 959

Re: Small Cap

Keep in mind that no one knows which part of the market will do better in the next 10-30 years. You should have a good rationale for choosing anything beyond the total US market and the total Int'l market. You need to have a good rationale, so that when your tilt away from the total market starts to...
by rkhusky
Wed May 09, 2018 6:42 pm
Forum: Investing - Help with Personal Investments
Topic: Should I sell Small Cap Value Fund and move it into Roth?
Replies: 23
Views: 1905

Re: Should I sell Small Cap Value Fund and move it into Roth?

You don't want to have the same fund in taxable and in an IRA, due to potential wash sales. So, if you want Small Value in your Roth, I would sell the $3K in taxable and move it to the Roth. The reality is that long-term shares held in a taxable account where one does not reinvest dividends will pr...
by rkhusky
Wed May 09, 2018 6:36 pm
Forum: Personal Consumer Issues
Topic: What's the view on dogs running free?
Replies: 110
Views: 5297

Re: What's the view on dogs running free?

My sister has a nice dog and lives in a rural area. When her dog wanders, a dog-loving neighbor brings the dog into their house and spoils her with good food and lets her sleep on their bed. The neighbor has indicated that they would be more than happy to take her permanently.
by rkhusky
Wed May 09, 2018 3:01 pm
Forum: Investing - Help with Personal Investments
Topic: Should I sell Small Cap Value Fund and move it into Roth?
Replies: 23
Views: 1905

Re: Should I sell Small Cap Value Fund and move it into Roth?

Small cap value has a higher dividend rate compared to small cap growth, making it less tax efficient. However, it is probably better than a bond fund in taxable. You don't want to have the same fund in taxable and in an IRA, due to potential wash sales. So, if you want Small Value in your Roth, I w...