Search found 1300 matches

by Prokofiev
Mon Mar 18, 2024 11:01 pm
Forum: Investing - Theory, News & General
Topic: Access to Morningstar's X-ray?
Replies: 16
Views: 1632

Re: Access to Morningstar's X-ray?

Faith20879 wrote: Sun Mar 17, 2024 8:00 pm OP, I've always used my free T Rowe Price online account to access the basic x-ray tool. You don't need to have assets held there to get a free account. However I've not accessed the tool since 2022.
Give it a try. My free T Rowe Price account is no longer working. I remember not being able to access X-ray a few years ago, but it came back after several months. This time I am locked out for over a year. It was a useful tool, but I don't find it THAT useful that I'd actually pay for it. Maybe I could try a new TR Price account?
by Prokofiev
Fri Mar 15, 2024 12:02 pm
Forum: Personal Finance (Not Investing)
Topic: 2.9% CC and 0.25 ACH fees
Replies: 14
Views: 1509

Re: 2.9% CC and 0.25 ACH fees

My daughter's soon to be (expensive) private school charges transaction fees of 2.89% on CC and 0.25% for e-check/ACH. Which is preferably using a CC with decent reward ecosystem like Chase Sapphire? I am thinking CC since Chase Sapphire point transfer to Hyatt has pretty good value. Plus, it is easier to keep track/budget for CC charges Instead of using the Sapphire card, get a Chase Freedom Unlimited card. No yearly fee, $200 rebate SUB and 1.5 Ultimate Reward pts per dollar. Then you can transfer the points into the Sapphire account with a single click and you just received 50% more for this transaction. Hyatt transfers are worth 2%+ per point. So 1.5 x 2% = 3% return. Not great at a 2.89% cost, but a money maker. I can no longer make U...
by Prokofiev
Fri Mar 08, 2024 10:33 am
Forum: Investing - Theory, News & General
Topic: Minimum TIPS lot size at Fidelity?
Replies: 15
Views: 1818

Re: Minimum TIPS lot size at Fidelity?

In the past few years, I have been able to purchase TIPS on the secondary market at Fidelity in lot sizes as small as 1. In case you're wondering, sometimes I have a bit of extra cash on hand and a TIPS ladder rung that could use topping up. That purchase strategy of buying 1-5 bonds every month or so might be costing you in the long run. As an exercise, try getting quotes for 1-5 bonds and then 50 bonds and finally 100-200 bonds. If you do this quickly, so that the market changes little while you're checking, you will see that the price per bond of a tiny order is much higher than the larger orders. You may be better served by building cash in a money market at 5%+ for several months and then making a larger order of TIPS. Same goes for s...
by Prokofiev
Thu Mar 07, 2024 4:05 pm
Forum: Personal Consumer Issues
Topic: Alaska trip without taking a cruise - help
Replies: 53
Views: 4879

Re: Alaska trip without taking a cruise - help

PoppyA wrote: Thu Mar 07, 2024 6:49 am This is by far a better way to see Alaska. Cruises are tourist traps IMHO. If it weren’t for your motion sickness issues I’d suggest taking the Alaskan ferry up the coast.
We took the ferry overnight to Juneau from Prince Rupert several years ago (Sept 2019). Great experience. Not too crowded, excellent site-seeing, OK food and sleeping quarters. Cheap and since they follow the coast, no sea sickness. And I am very prone to motion sickness. Highly recommended.

You still should get to Anchorage, rent a car and visit Kenai Fjords and Denali NPs.
by Prokofiev
Wed Mar 06, 2024 4:19 pm
Forum: Personal Investments
Topic: Retired teachers seek advice moving IRAs to Roth.
Replies: 21
Views: 2137

Re: Retired teachers seek advice moving IRAs to Roth.

HipCoyote wrote: Wed Mar 06, 2024 12:43 pm Did I read correctly that you pay 22% state tax?
This is not correct. Max LA rate is 6%. But in practice is usually around 5% for high earners since you subtract your fed taxes from income prior to
calculating the state tax. The more you pay to feds, the less you pay in state.
by Prokofiev
Tue Mar 05, 2024 10:30 am
Forum: Personal Consumer Issues
Topic: Tips for Language Learning (2024)
Replies: 18
Views: 1441

Re: Tips for Language Learning (2024)

Dupicate
by Prokofiev
Tue Mar 05, 2024 10:23 am
Forum: Personal Consumer Issues
Topic: Tips for Language Learning (2024)
Replies: 18
Views: 1441

Re: Tips for Language Learning (2024)

What is the easiest, most effective way to learn a new language? I'd rather not try and find time to attend classes, and prefer self-study (if that will even work...) I would second the recommendation for Duolingo. It is excellent and free. You can spend 5 minutes, several times a day or work for several hours straight. You can jump levels as needed and it involves both reading, writing, listening and speaking. But don't expect to be conversational in any significant way over a short period of study. It is almost impossible for most of us. Reading comes first, followed by writing. Speaking is more difficult since it also involves pronunciation and is time limited. Listening and having a conversation is the most difficult and takes years. I...
by Prokofiev
Mon Mar 04, 2024 11:14 am
Forum: Forum Issues and Administration
Topic: Long quotes?
Replies: 28
Views: 7227

Re: Long quotes?

ed97643 wrote: Mon Mar 04, 2024 5:38 am Typical on BH:

OP: writes a long post

Responder: Quotes the WHOLE thing, then adds just one line (such as "What's your AA?").
Or worse, the dreaded "+1"
by Prokofiev
Wed Feb 28, 2024 8:13 pm
Forum: Personal Finance (Not Investing)
Topic: A confident Boglehead in his 60s pondering managing a portfolio in their 80s and beyond?
Replies: 42
Views: 5625

Re: A confident Boglehead in his 60s pondering managing a portfolio in their 80s and beyond?

iim7V7IM7 wrote: Wed Feb 28, 2024 12:08 pm
Today in my early 60s, I am very capable of managing our assets . . .

We are working with fee for service CFP

At all times we will have an estate attorney and accountant,

. . . we have no children
Why do you have all these professionals if you are capable of managing your assets?

We paid an attorney $100 to write-up our wills, POA and medical directive. That's it. Our IRAs and Roths all have beneficiaries. With no children, I would think your estate would be relatively simple. Why do you have an accountant? Do you do your own taxes? Or a business that needs accounting?
It sounds as if you already have all the professional help you would ever need as you age.
by Prokofiev
Mon Feb 26, 2024 9:51 am
Forum: Personal Investments
Topic: Rebalancing Roth IRA
Replies: 19
Views: 2032

Re: Rebalancing Roth IRA

tetractys wrote: Sun Feb 25, 2024 3:55 pm
Congratulations on studying art—I earned a BFA, and it seemed to me much more intellectual than the math, physics and engineering.
You must have an interesting definition of "intellectual".
by Prokofiev
Thu Feb 15, 2024 6:09 pm
Forum: Personal Consumer Issues
Topic: Trouble with Vanguard systems [Problem refreshing web page]
Replies: 19
Views: 806

Re: Vanguard Login Broken

I continue to have problems similar to yours. Have tried 3 different browsers and 2 different computers. VG was unable to help.
My solution is to just "refresh." over and over until the error message goes away. Then when it sez "Data not available" I again refresh the page several times. Eventually it works. Frustrating.
by Prokofiev
Mon Feb 05, 2024 7:44 pm
Forum: Personal Finance (Not Investing)
Topic: Very concerned about security!
Replies: 34
Views: 5847

Re: Very concerned about security!

Tell us more about the pornographic chat line.

Was it a seductive female voice, talking about actively managed funds, foreign bonds and perhaps an AUM fee?

That was Vanguard's PAS number!
by Prokofiev
Mon Feb 05, 2024 5:15 pm
Forum: Personal Investments
Topic: TIPS Ladders questions
Replies: 5
Views: 867

Re: TIPS Ladders questions

some questions about TIPS Ladders - I keep reading about the value/smartness of a retiree building a 20 to30 year TIPS ladder to guarantee inflation protected income but wondering if the pros and cons are fully understood (including by me) so I have some questions. - if you have $1m to $2m in fixed what is the net $ benefit compared to bond funds or laddering treasuries? (i know hard to say since i rates are unknown but is it 100% accurate that the tips ladder will always, 100% outperform non-tips alternatives listed and will be just as liquid)? if not what is the scenario in which TIPS gets outperformed? TIPS will be outperformed under low-inflation conditions by equivalent nominal treasuries. Corporate fixed will have higher yields and g...
by Prokofiev
Mon Feb 05, 2024 12:32 pm
Forum: Personal Finance (Not Investing)
Topic: Continued tIRA Growth Undermines Roth Conversion Plan - A Real Life Example
Replies: 81
Views: 7874

Re: Continued tIRA Growth Undermines Roth Conversion Plan - A Real Life Example

Well, your TIRA or Roth conversions have not "undermined" your plan. You just have been lucky to have an asset allocation that grew your account as it was converted lower. Your conversion plan is still working. Perhaps you should be grateful that you seem to have too much money? Consider the alternative . . . Roth conversions are essentially pre-paying taxes at today's known tax rate with the assumption that tomorrow's unknown rate will likely be higher and thereby saving some taxes. When you began your Roth conversions, you had no idea if the TIRA accounts would grow or shrink. That was up to the market Gods who decided to bless you. But the opposite could easily have occurred, along with some unexpected expenses or health probl...
by Prokofiev
Mon Feb 05, 2024 10:48 am
Forum: Personal Finance (Not Investing)
Topic: Continued tIRA Growth Undermines Roth Conversion Plan - A Real Life Example
Replies: 81
Views: 7874

Re: Continued tIRA Growth Undermines Roth Conversion Plan - A Real Life Example

Well, your TIRA or Roth conversions have not "undermined" your plan. You just have been lucky to have an asset allocation that grew your account as it was converted lower. Your conversion plan is still working. Perhaps you should be grateful that you seem to have too much money? Consider the alternative . . . Roth conversions are essentially pre-paying taxes at today's known tax rate with the assumption that tomorrow's unknown rate will likely be higher and thereby saving some taxes. When you began your Roth conversions, you had no idea if the TIRA accounts would grow or shrink. That was up to the market Gods who decided to bless you. But the opposite could easily have occurred, along with some unexpected expenses or health proble...
by Prokofiev
Mon Feb 05, 2024 9:57 am
Forum: Personal Investments
Topic: Asset Location in Retirement
Replies: 4
Views: 429

Re: Asset Location in Retirement

Well, as you sell stocks in your taxable account for cash flow, you can rebalance in tax-deferred by buying an equivalent but different fund/ETF or
just wait 30 days to purchase the same asset. You will end-up with the asset allocation you desire.

Are you talking about 10-12% marginal tax rate? Or average? Either way, you should be doing Roth conversions over the next 5 years to take advantage of your low rate. I assume that RMDs will put you in a much higher marginal rate in 5 years. I guess if you are not receiving SS now, you will shortly so conversions over the next 2-3 years would probably be a good idea. Need actual numbers to give any more advice.
by Prokofiev
Thu Feb 01, 2024 10:22 pm
Forum: Personal Consumer Issues
Topic: Alternative to Uber/Lyft. Anyone take car service or taxi to airport anymore?
Replies: 55
Views: 5017

Re: Alternative to Uber/Lyft. Anyone take car service or taxi to airport anymore?

I have not found that Uber or Lyft drivers are any worse than their taxi counterparts. On average, I think they are slightly better.

Where we live (New Orleans), it makes more sense to use Lyft to go to the airport ($25-$35), but we always get a taxi returning from the airport. This is due to pricing as well as wait time. Ride shares have killed the taxi business here and I cannot count on a taxi getting to my house in any reasonable timeframe. Returning from the airport, there is a long line of cabs and a set price of $36. Calling Lyft from the airport can cost from $35-$100+. Prices are all over the place, but seldom at or below the fixed taxi rate. We have not used private car services.
by Prokofiev
Thu Feb 01, 2024 7:56 pm
Forum: Personal Finance (Not Investing)
Topic: What's Your Credit Card Rewards Strategy?
Replies: 7203
Views: 1421513

Re: Hotel Free Nights via Credit Card and Resort Fees

Just as important is the "extra" free night when booking longer stays. At IHG, you get the 4th night free when booking 3 nights using points. At Marriott or Hilton, it is a 5th night free when booking 4. Hyatt has no extra free nights for any length of stay. Not everyone can plan this way, but being flexible with your travel plans can result in some decent savings. I always consider this when booking using these programs. Great post, thanks. I think the IHG 4th night free is only for certain IHG CC holders (and it does NOT include the now-defunct IHG Select card, which for $49/year still gives me an annual free night and 10% back on my points redemptions). Yes, You must have the IHG credit card. I didn't know about the $49 card. ...
by Prokofiev
Thu Feb 01, 2024 4:10 pm
Forum: Personal Finance (Not Investing)
Topic: What's Your Credit Card Rewards Strategy?
Replies: 7203
Views: 1421513

Hotel Free Nights via Credit Card and Resort Fees

As someone who has spent over 3100 nights (or more?) in hotel beds, I am always searching for ways to cut costs for lodging. It is usually a larger expense for us than airfare/transportation due to long trips of 20-40 nights. During the past few years, we have seen the rise of resort and destination fees go from actual resorts to basic Vegas hotel rooms to New York city to London and on to Chicago and recently St Louis! These junk fees, along with internet fees, recreation fees and even point redemption fees can range from $10 to over $100/night and change the economics of one hotel over another if you are unaware of them. For the uninitiated here is a brief rundown of fees, free nights and how they interact with points programs and branded...
by Prokofiev
Tue Jan 30, 2024 4:56 pm
Forum: Personal Consumer Issues
Topic: Vanguard website issues
Replies: 42
Views: 4809

Re: Vanguard website issues

Yes,

My connection to the site has been terrible for the past 10+ days. I called the help desk and actually talked to someone after waiting only 5-6 minutes. Had me clear the cache and cookies, which did nothing. Received no other help. Tried Edge and Chrome. Both had problems. Three different computers. All the same. Very bothersome. After refreshing repeatedly, clicking on different functions, using the go back arrow, etc. I can usually get to where I want to go, despite the error codes. A pain.
by Prokofiev
Tue Jan 30, 2024 3:46 pm
Forum: Personal Finance (Not Investing)
Topic: Entering 1099 Div from Vanguard 2023
Replies: 15
Views: 1631

Re: Vanguard 1099-DIV is Different This Year

If you use TurboTax to download the Vanguard form, it will pull all of the info, fund by fund, stocks, ETFs. etc.
Not really necessary, but the detailed information comes along for free and gets filed with your 1040.
by Prokofiev
Mon Jan 29, 2024 3:02 pm
Forum: Personal Finance (Not Investing)
Topic: What's Your Credit Card Rewards Strategy?
Replies: 7203
Views: 1421513

Re: What's Your Credit Card Rewards Strategy?

BashDash wrote: Mon Jan 29, 2024 2:36 pm Looking to buy ihg points and points.com for a 100% bonus. Does this code as online I’m assuming. Looking to use my shop your way card or my boa with online bonus category
I know that it does NOT code as travel for Chase Ultimate rewards points, so I use my Chase Freedom UnLTD to get 1.5 ponts per $1 or my
Amtrak MasterCard to get 2.95 cents per $1.

I have no knowledge of B of A or "online" coding.
by Prokofiev
Sat Jan 27, 2024 5:20 pm
Forum: Personal Finance (Not Investing)
Topic: What's Your Credit Card Rewards Strategy?
Replies: 7203
Views: 1421513

Chase IHG Premier card

Just a heads-up for a card not often recommended. I recently decided to add the Chase IHG Premier Visa (Intercontinental, Holiday Inn) to my hotel and credit card family. Already being a Lifetime Titanium at Marriott, I first expanded to Hyatt and then added Hilton after being "Bonvoy"ed several years ago. For card holders, IHG will give you a 4th night free for points reservations. Also, you can often purchase points at .5 cents/point. Right now, this point sale continues until Feb 2. I bought 200k points last year and will probably get 300k this year. The card also comes with a free night every year upon fee payment ($99). Until March 31. you receive 7X points for grocery and gas purchases = 3.5% minimum. I just booked 4 nights ...
by Prokofiev
Thu Jan 25, 2024 12:24 pm
Forum: Personal Finance (Not Investing)
Topic: Faith Based Organizations
Replies: 10
Views: 932

Re: Faith based investment organization

I don't have an investment advisor or even a non-index fund/ETF.

But if I did . . . I think having an all-powerful God doing the heavy lifting could be a reasonable choice.

Then again, under-performance would lead me to question my faith.

So tread carefully and let us know the results to update the Wiki.
by Prokofiev
Mon Jan 15, 2024 5:32 pm
Forum: Personal Finance (Not Investing)
Topic: Is buying Gold or other precious metals a good idea to limit investment income?
Replies: 24
Views: 3329

Re: Is buying Gold or other precious metals a good idea to limit investment income?

TomatoTomahto wrote: Mon Jan 15, 2024 6:57 am
The last gold I bought was 30 years ago in the form of a wedding band. That worked out well.
Not for me. That investment lost 100% and is now worth $0.
Same goes for diamonds. Bad timing, I guess.

I now prefer TIPS.
by Prokofiev
Mon Jan 15, 2024 2:46 pm
Forum: Personal Consumer Issues
Topic: Chicago Vacation
Replies: 56
Views: 4740

Re: Chicago Vacation

alfaspider wrote: Mon Jan 15, 2024 2:35 pm
Kaintucke wrote: Mon Jan 15, 2024 2:26 pm Am reading Matt Rosenberg's book What Next, Chicago ? . Can't imagine visiting there, much less vacationing there.
You don't sell books entitled: "Chicago: a fine place to visit" unless you are selling travel guides. There's no doubt the city has its problems, but the media and political punditry has a vested interest in blowing those problems out of proportion. Many of the cities people are told to fear are statistically safer than the smaller cities and rural areas the people who fear them live in.
We travel to Chicago several times each year to avoid crime. Much safer than my neighborhood.

Everything is relative.
by Prokofiev
Mon Jan 15, 2024 11:16 am
Forum: Personal Consumer Issues
Topic: Chicago Vacation
Replies: 56
Views: 4740

Re: Chicago Vacation

Entertainment: I echo everyone who praises the architectural boat cruise -- it's phenomenal, educational (for the adults but arguably the kids as well if they have the attention span -- full disclosure, my 9 and 7 year old probably do not), and the best way to see the city and its skyline/architecture. There are several different boat tours available in Chicago. Most posts here are referring to the architectural boat tour sponsored by the Chicago Archicenter. I have taken this tour at least 5 times and it is great. But it is not to be confused with the many cheesy, tourist-oriented boats that go both on the Chicago River as well as Lake Michigan. Now my strong recommendation would be to take the cheesy boat tour! Your kids will not care wh...
by Prokofiev
Sat Jan 13, 2024 12:40 am
Forum: Personal Consumer Issues
Topic: Recommendations for trip to Italy and Netherlands
Replies: 33
Views: 4007

Re: Recommendations for trip to Italy and Netherlands

I would strongly consider visiting Pompeii. It can be done as a day trip from Rome via train.
Also a day trip to Hadrian's Villa ruins and Villa d'Este fountains is worthy of your time and
easy to do via a bus tour. This would make 5 days in Rome a minimum. Plenty of things to do
there. I would skip Amsterdam and concentrate your time in Italy. 3 cities max with day trips
out of town as needed. Moving between hotels can be taxing, so simplify and enjoy a more
relaxing schedule.
by Prokofiev
Wed Jan 10, 2024 12:20 pm
Forum: Personal Consumer Issues
Topic: 9-10 days in Turkey - where would you spend it?
Replies: 38
Views: 5452

Re: 9-10 days in Turkey - where would you spend it?

Visiting Ephesus is a must. Take a tour, group or private to understand the site better. I am going to disagree with this. I didn't have a guide for Ephesus but I heard what others were saying and a I had guides for Hierapolis and Pergamon and honestly I was not impressed. Some internet research on my phone (Wikipedia, some writeups from others) gave me a much better context than any guide I heard or used in Turkey. Also the guides generally didn't visit the Terrace Houses in Ephesus that I saw (and what I read). I had to guide my guide at Hierapolis and Pergamon to some places I wanted to see (such as Building Z) that he was going to skip over and this was a private tour. Good luck on a group tour. OK. I stand corrected Do not use a tour ...
by Prokofiev
Mon Jan 08, 2024 6:29 pm
Forum: Personal Consumer Issues
Topic: 9-10 days in Turkey - where would you spend it?
Replies: 38
Views: 5452

Re: 9-10 days in Turkey - where would you spend it?

Early stages of possible trip to Turkey in the spring. Just starting research, and thought there may be ideas here? Looking for combination of historical stuff, great outdoors, culture, and pretty much open to anything new. Two adults, no kids. Thinking of 3 days in Istanbul, and then . . . And, is 9-10 days enough? Thank you in advance for any ideas or suggestions. Istanbul, of course. But it deserves more than 3 days. Visiting Ephesus is a must. Take a tour, group or private to understand the site better. Staying several days in Izmir was how we visited the area. Many things to do and see from the city of Izmir. We spent 5 nights there along with 6 nights in Istanbul. I would not rent a car for this trip, but that is just how we travel. ...
by Prokofiev
Sun Dec 31, 2023 9:18 pm
Forum: Personal Finance (Not Investing)
Topic: Roth Conversion question
Replies: 9
Views: 1378

Re: Roth Conversion question

Hello, first-time poster here. I have a basic question about Roth conversions. If you do a Roth conversion during a year of low income (for example, an unemployment year or an early-retirement year), as is often advised, does the money of the Roth conversion itself count toward your taxable income that year? If I have zero taxable income one year, but then I do a Roth conversion on $200k (converting from my traditional 401k to a Roth 401k), then is my taxable income zero, or $200k? I'm guessing it would be 200k. But in that case, it seems like Roth conversions would only actually make sense if they were small conversions. Maybe during early retirement, that would make sense (when you likely have multiple consecutive years in which to do co...
by Prokofiev
Sun Dec 24, 2023 3:54 pm
Forum: Personal Investments
Topic: Why is this NOT a BogleHead Retiree Income strategy ?
Replies: 97
Views: 18118

Re: Why is this NOT a BogleHead Retiree Income strategy ?

I think it is far from obvious that taking half or three-quarters of your wealth and locking it up in this 30 year (or whatever) designed ladder of TIPS is even a good idea. To me that kind of commitment of resources is outright scary. Wow. While I have read many of your posts and think you give generally excellent advice, I cannot disagree with you more. As someone who has "locked-up" (not) over 50% of my assets in a TIPS ladder, I would argue that it is the LEAST scary thing anyone could do. What would be the alternative? Nominal treasuries? Surely TIPS are less risky even if by only a small margin. An equity mutual fund like VTSAX=VTI? Having a large % of your assets in something that could and has dropped 50% in only a year? ...
by Prokofiev
Sun Dec 24, 2023 1:26 pm
Forum: Personal Consumer Issues
Topic: Uber drivers and cancellation fee
Replies: 36
Views: 3986

Re: Uber drivers and cancellation fee

I've been using Lyft bc I get 10% back in Chase Ultimate Rewards points from my credit card. That sounds good. Which Chase card offers that? Chase Sapphire Reserve. It also has some deal with Lyft Pink that gives a small discount. For those that don't know about the card, the Card has a big annual fee but $300 of it comes back as credit for travel purchases. I also get good value from the Priority pass benefit and the primary CDW on rental cars. Well, it is actually 10X points for Lyft and 5X for Uber. But each point is worth at least 1.5 cents. For most travelers it is around 2 cents. So Lyft is usually $1 or $2 cheaper than Uber plus another 15-20% discount for the Sapphire Reserve. But even Uber gets a 7.5-10% discount. That's a good de...
by Prokofiev
Sat Dec 23, 2023 6:55 pm
Forum: Personal Consumer Issues
Topic: Uber drivers and cancellation fee
Replies: 36
Views: 3986

Re: Uber drivers and cancellation fee

Sometimes, both Uber and Lyft will send you an alternate pick-up location after you enter the actual address. When you confirmed the ride, did it say your address or someplace nearby? The reason is that some locations can be difficult or impossible to get to. Our favorite jazz club will sometimes allow pick-up if its Mon-Thur. But Fri-Sun nights it will switch to an alternate location 2 blocks away. The street can be blocked by tourists and taxis/vehicles cannot pass. No matter how many times you put in your requested address, it will only offer an alternative. This also happens in the French Quarter at night. Too difficult to actually drive to certain addresses. Usually not too big a problem unless it is raining. Have had this happen in Eu...
by Prokofiev
Sat Dec 23, 2023 8:42 am
Forum: Personal Investments
Topic: Still worth it to buy iBonds yearly?
Replies: 28
Views: 5449

Re: Still worth it to buy iBonds yearly?

Yes I actually just read that which prompted my question. Seems like not a huge investment and will come in useful. Also can avoid tax in working years vs. treasury ect. I know the conventional wisdom is to defer tax. But if you don't need that money until it matures in 30 yrs, you may want to do some estimate about your income situation when those bonds matures. You will be reporting 30-yr's worth of income in one year. No need to report all the income in a single year. You can sell parts in years 28,29 and 30 if that is advantageous. For working folks, it is a matter of paying interest now or in a lower bracket later. Not very likely someone is in the 12% bracket during their working years and then a 35% or 50% rate at age 80. I suppose ...
by Prokofiev
Fri Dec 22, 2023 11:28 am
Forum: Personal Investments
Topic: Why is this NOT a BogleHead Retiree Income strategy ?
Replies: 97
Views: 18118

Re: Why is this NOT a BogleHead Retiree Income strategy ?

Excellent... Ok... The BH fully recognized the UNCONTROLLABLE depreciator of this strategy is ONLY Inflation. The other depreciating factors of the Principal are Avoidables like (Market fluctuation, Advisor Fees, Currency Re-set?) I think... KNOWING what you will have in the CURRENT Fiat, in a SET Time Period, is worth a lot today. Then, in the next Year(s) when the financial landscape changes... adjust your financial movements accordingly. MY POINT: There are guaranteed "Knowns" (CD interest rate paid on a set date with an expiration) IF a person can live financially safe and happy with that guaranteed return forever... What the hell else matters? You sound like a good candidate for a TIPS ladder. And if you have been reading th...
by Prokofiev
Fri Dec 22, 2023 12:00 am
Forum: Personal Investments
Topic: Why is this NOT a BogleHead Retiree Income strategy ?
Replies: 97
Views: 18118

Re: Why is this NOT a BogleHead Retiree Income strategy ?

Excellent... Ok... The BH fully recognized the UNCONTROLLABLE depreciator of this strategy is ONLY Inflation. The other depreciating factors of the Principal are Avoidables like (Market fluctuation, Advisor Fees, Currency Re-set?) I think... KNOWING what you will have in the CURRENT Fiat, in a SET Time Period, is worth a lot today. Then, in the next Year(s) when the financial landscape changes... adjust your financial movements accordingly. MY POINT: There are guaranteed "Knowns" (CD interest rate paid on a set date with an expiration) IF a person can live financially safe and happy with that guaranteed return forever... What the hell else matters? You sound like a good candidate for a TIPS ladder. And if you have been reading th...
by Prokofiev
Thu Dec 21, 2023 9:33 am
Forum: Personal Consumer Issues
Topic: Retired & seeking alternatives to monthly budget? Swim naked?
Replies: 15
Views: 1554

Re: Retired & seeking alternatives to monthly budget? Swim naked?

I do not bother to track spending. I can go back and calculate spending by category looking at my credit card statements, now that 90% of our expenses are via CC, but I really don't find that useful. I do track portfolio ROR, both nominal and real along with net worth, nominal and real. My portfolio of assets goes up by 7.9%, or 4.3% real. Perhaps my net worth is up 4.8%, or 1.2% real. So if my worth keeps increasing, both nominal and real, I know my spending is under control. I track these numbers quarterly and plot them on a graph going back almost 40 years. I like seeing up to the right . . . The only time tracking spending was helpful was during the early years, when the portfolio was relatively small compared to annual expenses. In add...
by Prokofiev
Mon Dec 18, 2023 11:00 am
Forum: Personal Consumer Issues
Topic: Deductibility of LTC
Replies: 31
Views: 2183

Re: Deductibility of LTC

I am so confused about this regarding my elderly mother, who is in assisted living, but other than showers , doesn’t receive any specialized care. I think but am not sure that she has to have problems with at least 2 activities of daily living, and from reading the IRS publication 502 it sounds like she can’t yet use her IRA for this nor take deductions . Does anyone have links to help me understand the rules for assisted living in her low need situation? First off, my mother was not in assisted living, but in a nursing home with hospice care. Despite being given less than 6 months to live, she kept getting better and better for 3.5 years. But she clearly NEEDED this care. Confined to a wheelchair, it was not really optional. With assisted...
by Prokofiev
Mon Dec 18, 2023 10:44 am
Forum: Personal Consumer Issues
Topic: Deductibility of LTC
Replies: 31
Views: 2183

Re: Deductibility of LTC

Having a larger bucket of whatever later in life would be a good thing as long as it does not take anything away from that same life. The tradeoffs between specifically leaving higher amounts in tax deferred soley for LTC vs optimizing those accounts on their own becomes quite interesting when you have 'larger buckets' to model and manage. Not sure exactly what you mean here. As a rule of thumb, having $0 in your TIRA by Roth converting it all at 22% or 24% plus state tax seems non-optimum for those with no LTC insurance. But keeping a million or more in that account is probably far too much. I aim for $200-$300k in today's dollars as a reasonable amount. But trying to model an "optimum" amount is just too difficult with all the ...
by Prokofiev
Mon Dec 18, 2023 9:39 am
Forum: Personal Consumer Issues
Topic: Deductibility of LTC
Replies: 31
Views: 2183

Re: Deductibility of LTC

. . . but it's not worth putting much work into figuring it out unless a back-of-the-envelope calculation shows that you are somewhere near spending 7.5% of your income (AGI) on it (and deductible out-of-pocket costs of health insurance). It's only the amount over 7.5% that is deductible. Yes, this is true but 7.5% of income for most people is a VERY small amount compared to the cost of a nursing home or any type of LTC. My mother was in a nursing home for 3 years after the death of my father. Her SS and pension were about $45k combined (in 2011). Luckily, she had almost $2 million in taxable + TIRA +Roth. With $1 million in taxable, she received $20k/yr in dividends + interest. So all in about $65k of yearly income. 7.5% of $65k = less th...
by Prokofiev
Fri Dec 15, 2023 10:59 am
Forum: Personal Investments
Topic: Advice for early retirement to take care of sick partner
Replies: 63
Views: 10250

Re: Advice for early retirement to take care of sick partner

Does anyone have any guidance on how I should transition from individual stocks to a 3 fund portfolio with the goal of minimizing tax or other negative implications? First, check each individual stock holding and calculate the cap gains. Break it down by tax lot. This assumes that you bought these holdings over time. 100 shares this year. 200 shares last year. 100 shares in 2008, etc. Calculate the cap gain per dollar for each tax lot and start by selling those shares with the lowest gains. My personal rule of thumb is to not worry about any lot with 10% or less embedded gains. That results in about a 1.5% tax cost to diversify your portfolio AND reset your basis. If the ratio is 40% or more, I would hesitate to sell the position. Maybe sl...
by Prokofiev
Sat Dec 09, 2023 9:18 am
Forum: Personal Finance (Not Investing)
Topic: Estimating a Personal Inflation Rate on Essential Expenses
Replies: 10
Views: 1073

Re: Estimating a Personal Inflation Rate on Essential Expenses

For purposes of retirement planning, I have tried estimate our personal rate of inflation on our essential expenses. I have come up with a rate of 3.75%/year. This is higher than long term CPI-U or E. This influenced by the rise in healthcare costs which are rising at a higher rate. This is based on reviewing data across the last 5 years which includes COVID. I understand the long term Fed target is 2% but that is far lower than what we have experienced. Calculating for the past 5 years, the actual CPI-U has been: 2023 = 3.7%? 2022 = 6.45% 2021 = 7.04% 2020 = 1.36% 2019 = 2.34% This would give an average of 4.17% /yr . Although the Fed is aiming for 2%, that has not been achieved over the time period that you calculated. So it appears you ...
by Prokofiev
Wed Dec 06, 2023 9:31 pm
Forum: Personal Finance (Not Investing)
Topic: How to tax deduct upcoming losses in Roth IRA: Brilliant?
Replies: 53
Views: 7715

Re: How to tax deduct upcoming losses in Roth IRA: Brilliant?

toddthebod wrote: Wed Dec 06, 2023 9:24 pm Possibly the worst investing advice I have ever seen on this forum or anywhere.
Why be so coy? Tell us how you really feel!
by Prokofiev
Wed Dec 06, 2023 8:09 pm
Forum: Personal Finance (Not Investing)
Topic: How to tax deduct upcoming losses in Roth IRA: Brilliant?
Replies: 53
Views: 7715

Re: How to tax deduct upcoming losses in Roth IRA: Brilliant?

Yeah all you need to do is identify a time in advance when it’s going to drop by enough to make it worthwhile. Easy peasy. Exactly. If you somehow "know" that VTI will continue to decline, why not just sell it in your Roth and keep it there in MM and earn 5.4%? Then when you know it is about to reverse course and appreciate, you rebuy VTI in the Roth. And you can do this as many times per year as you want! Easy peasy . . . unless i'm missing something in the wording above, you can only return a distribution from Roth once a year (and within the 60 days from distribution). So it's not "as many times per year as you want!" No. You can trade within a Roth as much as you want. If you have a crystal ball and know that VTI is...
by Prokofiev
Wed Dec 06, 2023 8:00 pm
Forum: Personal Investments
Topic: fixing the sin of holding bonds in a taxable account
Replies: 66
Views: 11408

Re: fixing the sin of holding bonds in a taxable account

So to be clear -- anything remaining even AFTER offsetting gains can ALSO be used for an additional 3000 against income? It goes on to support that ("first capital gains, then to income ...") when referring to (then) carrying anything additional forward. Do I have that right? Yes. You must first offset cap gains with your cap losses. If you still have any losses remaining, you can offset ordinary income up to $3k/yr. Any losses remaining are rolled-over to the next year. So I always try to have $10-15k of available losses to minimize my taxes for the next 3-5 years or more. That is not always possible if you absolutely need to sell a taxable position for living expenses. But you should understand the rules and tax plan as best as...
by Prokofiev
Wed Dec 06, 2023 7:40 pm
Forum: Personal Finance (Not Investing)
Topic: How to tax deduct upcoming losses in Roth IRA: Brilliant?
Replies: 53
Views: 7715

Re: How to tax deduct upcoming losses in Roth IRA: Brilliant?

TropikThunder wrote: Wed Dec 06, 2023 7:32 pm Yeah all you need to do is identify a time in advance when it’s going to drop by enough to make it worthwhile. Easy peasy.
Exactly. If you somehow "know" that VTI will continue to decline, why not just sell it in your Roth and keep it there in MM and earn 5.4%?
Then when you know it is about to reverse course and appreciate, you rebuy VTI in the Roth. And you can do this as many times per year as you want!

Easy peasy . . .
by Prokofiev
Wed Dec 06, 2023 7:23 pm
Forum: Personal Investments
Topic: fixing the sin of holding bonds in a taxable account
Replies: 66
Views: 11408

Re: fixing the sin of holding bonds in a taxable account

Like you I have the same bond fund in a taxable account...except even more :oops: My rationale at the time was who cares if I have to pay taxes on the 1% those bonds are paying. Now the NAV is less than I paid and I'm underwater to the tune of about 13%. I guess I didn't understand at the time that a bond fund could lose money. Now I know. Think about it for a minute. Given your chosen asset allocation, that was by far the best outcome you could have hoped for. Had you done the reverse and held this fund in a tax-advantaged account while holding a stock fund in a taxable account, you would've lost the same amount of money, you would not be able to tax loss harvest, and you would have taxable capital gains from your stock fund. As it is, yo...
by Prokofiev
Sun Dec 03, 2023 8:16 pm
Forum: Personal Investments
Topic: Advice for early retirement to take care of sick partner
Replies: 63
Views: 10250

Re: Advice for early retirement to take care of sick partner

Looks like you have 63% of your AA in only 3 stocks. Not a great idea. No diversification. Thank you for the feedback. Any suggestion on how I should diversify my portfolio? I am sure there are countless resources out there on diversifying, but I am still not clear on the best way I should diversify and how I should adjust this over time as I get older. Well, to start out, any stocks in your IRA can be sold without regard to capital gains. Consider selling the Tesla stock and deploy that amount into fixed income, possibly TIPS. You probably want at least 15-25% of your portfolio in fixed income and this is usually best kept in the IRA. Your taxable portfolio may be a bigger problem if you have large, embedded cap gains. See if some of the ...
by Prokofiev
Thu Nov 30, 2023 10:19 pm
Forum: Investing - Theory, News & General
Topic: 20 Most Valuable U.S. Public Companies 1995-2023
Replies: 10
Views: 2244

Re: 20 Most Valuable U.S. Public Companies 1995-2023

Went from General Electric dominating the market, to Exxon/Chevron to Apple