Search found 1105 matches

by PinotGris
Sat Mar 16, 2024 12:24 pm
Forum: Personal Finance (Not Investing)
Topic: Estimating RMD Taxes for Retirement Planning
Replies: 15
Views: 1808

Re: Estimating RMD Taxes for Retirement Planning

Like most, you're probably using a tax software program. This can help quite a bit. First, you can read up on safe harbor rules for next year's tax planning. This can give you a rough estimate on what you might want to contribute to your Estimate Tax Payments in order to avoid a penalty. Second, you can use the tax software to project your income and tax liability for the following year. For example, TurboTax offers a "What-If" scenario that allows you to put in your income and get a rough idea of your taxable income. If you'd prefer to have your tax withheld from your RMD, that's also a possibility that your tax software can help you with. It's probably not worth your time to start calculating out more than a year in the future ...
by PinotGris
Mon Mar 11, 2024 3:22 pm
Forum: Personal Investments
Topic: Deep Dive: Poor Tax Efficiency of Vanguard International Funds 2023
Replies: 41
Views: 6035

Re: Deep Dive: Poor Tax Efficiency of Vanguard International Funds 2023

This excellent post highlights some of the (many) disadvantages of international investing: More complex Higher costs Less tax-efficient Trying to figure out and optimize the proper placement of international funds seems like a major headache, especially when QDI can change by such a large amount year-over-year, thereby altering all the calculations. It's much easier to simply avoid international altogether and invest in a broadly diversified US fund that has a lower dividend yield and 100% QDI every year, like the Vanguard Tax-Managed Capital Appreciation Fund. An investor still gets plenty of international exposure via the large US multinationals, but without all the extra costs/taxes/hassles. I got rid of all international n bonds and e...
by PinotGris
Sat Mar 09, 2024 5:03 pm
Forum: Personal Consumer Issues
Topic: What Movie Have You Recently Watched?
Replies: 11037
Views: 2066573

Re: What Movie Have You Recently Watched?

jjunk wrote: Tue Feb 27, 2024 2:27 pm Anatomy of a Fall. We had a $1 movie from Comcast (look in rewards if you're a Comcast customer btw). This movie was excellent. Great storytelling, great acting, solid suspense as to who committed the crime, etc. Huller deserves her Oscar nom but honestly the entire case was excellent. One of the better movies from last year.
I never knew about Comcast reward. Thank you for that and the great suggestion for movie to watch.
by PinotGris
Sat Mar 09, 2024 12:44 pm
Forum: Personal Finance (Not Investing)
Topic: QCD sweet spot?
Replies: 31
Views: 2950

Re: QCD sweet spot?

It is clear to me that you don’t want to give to charity while alive. Not quite true. I do give and would love to give more, especially to a beloved local no-kill animal shelter. While I'm alive! My post title asks about the "sweet spot", specifically between giving wisely and considering not wanting to be sorry later, given that my crystal ball won't give me a clear, actionable answer and we don't have kids or family to rescue us. I am motivated to protect our safety net in our situation. Not apologizing for that. Also, much as I love and respect our curent CPA - a wise man - the CPA of a company I once worked for was all for letting the tax tail wag the dog, to quote a guy on a local radio show. From dealing with him, I learned...
by PinotGris
Fri Mar 08, 2024 11:10 am
Forum: Personal Consumer Issues
Topic: Getting Vanguard website to work for me
Replies: 11
Views: 1290

Re: Getting Vanguard website to work for me

This may just be a computer issue on my end but Vanguard has not been able to tell me how to fix it. They are saying that the web site works fine and I'm the only one having this problem. They also say the don't have a specific tech support function there to help me. I'm wondering if someone here has run into this particular problem and how they fixed it. Thanks for any insights! Details: Starting from the "transaction" drop-down for a particular fund: Selling part of a specific lot of vanguard mutual funds from brokerage account (not ira/sep). Selected the shares then click on "CONTINUE", then "CONTINUE". Nothing happens after I click the second "CONTINUE" and I have to call Vanguard to sell by phon...
by PinotGris
Thu Mar 07, 2024 11:14 am
Forum: Investing - Theory, News & General
Topic: Vanguard Customer Service Mega-thread
Replies: 1512
Views: 167393

Re: Vanguard Customer Service Mega-thread

I'm reading Charles D. Ellis' October, 2023 book Inside Vanguard: Leadership Secrets From the Company That Continues to Rewrite the Rules of the Investing Business . It delivers on both parts of the title before and after the colon. I.e. (before the colon) there is a lot of material about Vanguard, its history, and its leaders that I didn't know before. And (after the colon) it is relentlessly upbeat, positive, and pro-Vanguard. Let's say 99% pro-Vanguard. And it is full of praise for both William McNabb and Mortimer Buckley. Therefore it was interesting to read, pp. 298-299: Vanguard has fallen behind key competitors like Fidelity and Schwab in service to investors. The reasons range from the firm’s explosive growth in assets to its long-...
by PinotGris
Tue Mar 05, 2024 2:48 pm
Forum: Personal Finance (Not Investing)
Topic: Charitable giving - donor advised fund? How much?
Replies: 51
Views: 3929

Re: Charitable giving - donor advised fund? How much?

mrgeeze wrote: Sun Aug 06, 2023 8:46 pm A DAF looked appealing to me as I have a chunk of highly appreciated shares (AAPL <$20/share),
So I set one up.

Honestly I haven't used it.
We give away approximately 15% of our annual gross cash flow.
As of yet the DAF vehicle hasn't been needed.

Perhaps one day it will come in handy.
Is the gross income?
by PinotGris
Mon Mar 04, 2024 11:55 am
Forum: Personal Finance (Not Investing)
Topic: small TT errors in capital loss carryover
Replies: 6
Views: 989

Re: small TT errors in capital loss carryover

This year I noticed small errors in the capital loss carryover from last year. Both returns were/are done in TurboTax. ST loss about $20 too low and LT loss about $100 too high. Has anyone experienced this sort of thing before? In the 2022 files, I had a WIP return saved, and also another return which is an strategy study for 2023. (Like many, I find using last year's tax software to be a useful tool for that, barring any major change to the tax code.) I checked, and the carryovers for those "returns" in 2022 format were very different than those in the filed 2022 return. It makes me uneasy if TurboTax may not accurately load data from the prior year tax return file. However, the software specifically asks us if the loaded carryo...
by PinotGris
Sun Mar 03, 2024 4:13 pm
Forum: Personal Investments
Topic: Tax impact of Gift vs Charity
Replies: 10
Views: 672

Re: Tax impact of Gift vs Charity

Artsdoctor wrote: Sun Mar 03, 2024 4:05 pm

Do you care if your kids have to pay taxes?
Yes, best option tax-wise in terms of minimizing our own taxes.
As for my kids taxes, I have not thought of it, and yes I do care how much they will net. They are both in reasonably high tax brackets but one of them can use the money.
[/quote]

If the amount your son/daughter nets is important to you, figure out what your combined federal and state marginal tax brackets are (for capital gains) and compare to theirs. Make sure you have the correct amount of capital gains calculated. And then decide if gifting shares versus selling and giving cash would be best for the child who needs it most. You have multiple options.
[/quote]

Good point, thank you.
by PinotGris
Sun Mar 03, 2024 4:11 pm
Forum: Personal Investments
Topic: Why Wellington?
Replies: 13
Views: 3153

Re: Why Wellington?

We hold Wellington in Taxable. It is a great fund , our first investment at Vanguard, and it is not suitable for us now, at 24% bracket, retired, and drawing RMD. This year 82% of its dividends was ordinary income rather than qualified dividends. The latest Morningstar report on Vanguard Wellington mentions that Daniel Pozen took over as lead equity manager in July 2020. There is now more emphasis on security selection with fewer holdings and a reduced exposure to value. The top five holdings are currently Microsoft, Google, Apple, Amazon, and Meta. The increased emphasis on growth relative to value helps explain the recent outperformance relative to Vanguard Wellesley. These changes in the fund may explain the lower percentages seen in Qu...
by PinotGris
Sun Mar 03, 2024 4:09 pm
Forum: Personal Investments
Topic: Why Wellington?
Replies: 13
Views: 3153

Re: Why Wellington?

plats wrote: Thu Feb 29, 2024 6:58 pm Are you sure about that 82%? I'm seeing 55%.
Hmm. My qualif. percent of dividends was 17%. I hope Vanguard did not make a mistake. As investor shares the expense ratio is also high.
by PinotGris
Sun Mar 03, 2024 3:30 pm
Forum: Personal Investments
Topic: Tax impact of Gift vs Charity
Replies: 10
Views: 672

Re: Tax impact of Gift vs Charity

Jack FFR1846 wrote: Sun Mar 03, 2024 2:26 pm You can also just sell, take the cap gain and pay LTCG tax and spend it on something you really want.
Yes, that was my first thought. I can always give some to charity, but QCD is better I think for tax impact. I am exploring the best tax-managed option.
by PinotGris
Sun Mar 03, 2024 3:27 pm
Forum: Personal Investments
Topic: Tax impact of Gift vs Charity
Replies: 10
Views: 672

Re: Tax impact of Gift vs Charity

delamer wrote: Sun Mar 03, 2024 2:18 pm Best option tax-wise in terms of minimizing your own taxes?

Do you care if your kids have to pay taxes?
Yes, best option tax-wise in terms of minimizing our own taxes.
As for my kids taxes, I have not thought of it, and yes I do care how much they will net. They are both in reasonably high tax brackets but one of them can use the money.
by PinotGris
Sun Mar 03, 2024 1:46 pm
Forum: Personal Investments
Topic: Tax impact of Gift vs Charity
Replies: 10
Views: 672

Tax impact of Gift vs Charity

I have about 1000 shares of Wellington Funds (investor) in my taxable account which got downgraded to investor shares because the value was below 50K. All non-covered shares at average cost of $27. I would like to get rid of it. I have 3 choices.
I can sell it and offset the cap gain against my Cap Loss carryover. I would have to time the market to get optimum result. In the meantime it will generate dividends.
I can donate to charity.
I can gift it to our adult kids.
May be a mix of 2.
Please help me find the best option tax wise.
We draw RMD (I cannot QCD the fund, it needs to come from the RMD). We are at 24% bracket. Retired and have enough cash flow for our needs and wants. what would you do?
Thank you.
by PinotGris
Thu Feb 29, 2024 5:38 pm
Forum: Personal Investments
Topic: Why Wellington?
Replies: 13
Views: 3153

Why Wellington?

We hold Wellington in Taxable. It is a great fund , our first investment at Vanguard, and it is not suitable for us now, at 24% bracket, retired, and drawing RMD. This year 82% of its dividends was ordinary income rather than qualified dividends.
I loathe to sell the holding but I don't like the taxes we pay. I plan to liquidate it slowly against our capital loss carryover.
I am curious as to why YOU hold Wellington in your taxable account, if you do.
by PinotGris
Wed Feb 28, 2024 12:36 pm
Forum: Personal Finance (Not Investing)
Topic: PSA: recent Schwab Bank bill pay difficulties
Replies: 24
Views: 3380

Re: PSA: recent Schwab Bank bill pay difficulties

beyou wrote: Fri Jan 06, 2023 11:54 pm I never have these problems with my Vanguard bill payments !
How do you set up bill payments with Vanguard?
by PinotGris
Wed Feb 28, 2024 12:31 pm
Forum: Personal Finance (Not Investing)
Topic: PSA: recent Schwab Bank bill pay difficulties
Replies: 24
Views: 3380

Re: PSA: recent Schwab Bank bill pay difficulties

I thought I should add my woes with Fiserv that services my bank , TD Bank. This involved Target Red Card account. The payment I set up with the Bill Pay went to something called Target National Bank which does not exist! Oddly enough it was acquired by TD Bank. Cut a long story short I went in store and paid my Target bill and they removed the late pay fee and any interest. I worked with TD bank and got the payment to the wrong place reversed back to my checking account. A few days later, yesterday, I got an email, introducing themselves as Fiser the bill pay service. Without admitting the mishap with the check they want me to pay them the money they sent to the wrong place. They also closed off my bill pay service and offered to reinstate...
by PinotGris
Tue Feb 27, 2024 1:44 pm
Forum: Personal Finance (Not Investing)
Topic: Why Emergency Fund?
Replies: 80
Views: 8440

Re: Why Emergency Fund?

Wondering if someone could shed some light on what's the purpose of a designated emergency fund. Say I'm starting from 0, many would suggest I save up 6 months emergency fund in cash before doing any investing. Ok fine, I save up the 6 months emergency fund, but what if I instead save up 12 months or more in a taxable brokerage, and invest the entire thing in the market (VT - Total World Market). Even if this fund crashed 50%, I would still be at 6 months emergency fund. Not to mention, the more this fund grows, the more money I would have even after the 50% crash. I've been lucky enough to save about 7x expenses at 30 so far, half in Roth and half in brokerage, so I'm kind of thinking why keep any cash other than maybe a month in liquid c...
by PinotGris
Tue Feb 27, 2024 1:38 pm
Forum: Personal Consumer Issues
Topic: What are some of the things that improved YOUR quality of life?
Replies: 254
Views: 41954

Re: What are some of the things that improved YOUR quality of life?

Tib wrote: Tue Feb 27, 2024 12:45 am To mention one not yet mentioned: taping lips shut for sleeping. Prevents mouth-drying mouth breathing. Have done it for 25 years.
I have been experiencing dry mouth recently, wakes me up. How do you tape them, what do you use?
by PinotGris
Mon Feb 26, 2024 3:03 pm
Forum: Personal Finance (Not Investing)
Topic: TD Bank billpay error
Replies: 14
Views: 1302

Re: TD Bank billpay error

PinotGris wrote: Mon Feb 19, 2024 9:49 am
livesoft wrote: Mon Feb 19, 2024 9:41 am
PinotGris wrote: Mon Feb 19, 2024 9:29 am[...] I am hoping to atleast talk to someone instead of playing with recorded voice prompts.
Thanks for a taking the hit for Team Bogleheads.org. I will patiently wait for a full report on how you got this solved. Thanks!
Thank you Livesoft for your confidence :mrgreen: Hope to be back with victory.
Today I saw the improper payment reversed in my checking account. I took the advice upthread and worked it with patience. Target also reversed the late fee and interest. All good.
by PinotGris
Mon Feb 26, 2024 2:56 pm
Forum: Personal Consumer Issues
Topic: What are some of the things that improved YOUR quality of life?
Replies: 254
Views: 41954

Re: What are some of the things that improved YOUR quality of life?

WhitePuma wrote: Sun Feb 25, 2024 6:50 pm
PinotGris wrote: Sat Jan 27, 2024 8:01 am
4nursebee wrote: Sat Jan 27, 2024 3:23 am [

How does one eliminate desires?
By learning what desire is and where it arises from :happy.
Is Pinot Gris a desire? And if so, have you eliminated it?
Absolutely. Had to, among other things, in order to cure my acid reflux. Eliminating desires is about simplifying one’s life, and avoiding attachments. Being mindful..
by PinotGris
Fri Feb 23, 2024 5:59 pm
Forum: Personal Finance (Not Investing)
Topic: How do I report Roth conversion after RMD
Replies: 16
Views: 1245

Re: How do I report Roth conversion after RMD

After taking out our RMD and withholding taxes, we withdrew 10K and converted to Roth. How is this reported when doing my taxes? Assuming that you do not have any basis in IRA.... Just enter the 1099 as usual and it will or will not generate an 8606. This seems to depend on how you answer the non-intuitive questions on tax software. If you don't get the 8606 generated and want it, go back and answer questions differently until you do get it. No, I'm not being flippant. :happy I've managed to do it both ways over the years and the IRS does not seem to care as long as the income is reported. For an older tax-payer, the lack of the 8606 does not seem worry them even though technically, it is supposed to include Form 8606. My IRA happens to ha...
by PinotGris
Fri Feb 23, 2024 5:51 pm
Forum: Personal Finance (Not Investing)
Topic: How do I report Roth conversion after RMD
Replies: 16
Views: 1245

Re: How do I report Roth conversion after RMD

vtMaps wrote: Fri Feb 23, 2024 4:19 pm
PinotGris wrote: Fri Feb 23, 2024 4:10 pm It was removed from IRA and Posted to his Roth IRA account. Vanguard has a button on the screen to do this when in the IRA account page.
Vanguard to Vanguard... All you need to do is form 8606.

By the way, was any tax withheld? If yes, there are consequences and you have (or had) the option (within 60 days) to increase your Roth conversion by the amount of the taxes withheld. If no, there are consequences and you need to think about how/when to pay the taxes on the conversion.

--vtMaps
Taxes were withheld. I think 8606 is for basis in an IRA.
by PinotGris
Fri Feb 23, 2024 4:14 pm
Forum: Personal Finance (Not Investing)
Topic: How do I report Roth conversion after RMD
Replies: 16
Views: 1245

Re: How do I report Roth conversion after RMD

This could be simple or it could be complicated. 1. As the prior poster mentioned, how did you do the conversion. Direct transfer, or withdrawal then transfer. 2. Does your t-IRA have any post-tax money (i.e., non-deductible contributions) or is it entirely pre-tax money so that all withdrawals are taxable? The 1099R you receive will show the total IRA withdrawal and conversion amounts. The IRS assumes it is all taxable and it is unless you made non-deductible contributions. When you do your taxes next year, you will simply inform the tax software the amount that was rolled over into Roth. It won't change your tax liability, but it will help you track your Roth contributions/conversions. 1099 R only shows a gross distribution amount. This ...
by PinotGris
Fri Feb 23, 2024 4:10 pm
Forum: Personal Finance (Not Investing)
Topic: How do I report Roth conversion after RMD
Replies: 16
Views: 1245

Re: How do I report Roth conversion after RMD

vtMaps wrote: Fri Feb 23, 2024 3:34 pm
PinotGris wrote: Fri Feb 23, 2024 3:26 pm After taking out our RMD and withholding taxes, we withdrew 10K and converted to Roth. How is this reported when doing my taxes?
Depending on how you did your conversion, you only need to fill out form 8606.

How did you do the conversion? Did you actually withdraw $10k from your IRA account and then send a check for $10k to the custodian of your Roth? If so, that will involve a bit more effort to account for.

--vtMaps
It was removed from IRA and Posted to his Roth IRA account. Vanguard has a button on the screen to do this when in the IRA account page.
by PinotGris
Fri Feb 23, 2024 3:26 pm
Forum: Personal Finance (Not Investing)
Topic: How do I report Roth conversion after RMD
Replies: 16
Views: 1245

How do I report Roth conversion after RMD

After taking out our RMD and withholding taxes, we withdrew 10K and converted to Roth. How is this reported when doing my taxes?
by PinotGris
Mon Feb 19, 2024 9:49 am
Forum: Personal Finance (Not Investing)
Topic: TD Bank billpay error
Replies: 14
Views: 1302

Re: TD Bank billpay error

livesoft wrote: Mon Feb 19, 2024 9:41 am
PinotGris wrote: Mon Feb 19, 2024 9:29 am[...] I am hoping to atleast talk to someone instead of playing with recorded voice prompts.
Thanks for a taking the hit for Team Bogleheads.org. I will patiently wait for a full report on how you got this solved. Thanks!
Thank you Livesoft for your confidence :mrgreen: Hope to be back with victory.
by PinotGris
Mon Feb 19, 2024 9:46 am
Forum: Personal Finance (Not Investing)
Topic: TD Bank billpay error
Replies: 14
Views: 1302

Re: TD Bank billpay error

PeninsulaPerson wrote: Mon Feb 19, 2024 9:40 am
PinotGris wrote: Mon Feb 19, 2024 9:37 am
I live in a Boston suburb.

There are still a lot of good local banks in Metro Boston.

You can do infinitely better than TD Bank.

(If you care to be a little more specific about your location, folks may be able to suggest good local banks in that area.)
We live in Andover and have always used local banks until they closed (Andover Bank, Bay Bank). Only problem i ever had was with Santander which was pretty awful to deal with.
by PinotGris
Mon Feb 19, 2024 9:44 am
Forum: Personal Finance (Not Investing)
Topic: TD Bank billpay error
Replies: 14
Views: 1302

Re: TD Bank billpay error

First of all, don't be afraid. Stuff happens. Since you didn't get anywhere over the phone, going in person is worth a shot. Be calm. Bring plenty of documentation. Despite all the horror stories we hear, most people want to help as long as you go in with a good attitude and have all your documentation. The bank may also be able to deal with redcard directly, perhaps with the problem of the already charged interest. Now, as for billpay... I am not a fan. I've been beating this drum here on other threads. I've been a recipient of billpay (as a treasurer of a nonprofit) and have seen just how error prone it is. I don't like it. As previous posted said, just set up automatic payments. I don't know why BH'ers fear this so much. The 0.00001% of...
by PinotGris
Mon Feb 19, 2024 9:37 am
Forum: Personal Finance (Not Investing)
Topic: TD Bank billpay error
Replies: 14
Views: 1302

Re: TD Bank billpay error

I have a Red Card credit card with Target. Since i got the card last year i got paper statements twice and TD bank bill pay paid them both promptly. Last month i never received a statement and instead got a past due plus a $30 late fee notice plus interest. This is becoming a nightmare. I am afraid they are going to charge interest upon interest. Why did you get this card and do you only use it at Target? Because you don't seem to use it much and it might be better for you to cancel the Red Card and use another card at Target. It sounds like you did use the Red Card recently and never received a statement. It is your job to be aware of what bills you get on a regular (or irregular!) basis so you will know if one doesn't arrive. Maybe keep ...
by PinotGris
Mon Feb 19, 2024 9:29 am
Forum: Personal Finance (Not Investing)
Topic: TD Bank billpay error
Replies: 14
Views: 1302

Re: TD Bank billpay error

livesoft wrote: Mon Feb 19, 2024 7:13 am I doubt anyone in the bank that you can walk into would be able to help you unless you wanted some mints or cookies. I would be calling the billpay help number and talking to them. Also call the credit card company.
The odd thing is the card is sponsored -is that the right word? - by TD Bank. The Red Card web site is dysfunctional except for the one time i was able to get hold of the statement online that was never mailed. The past due bill arrived in the mail promptly. I am hoping to atleast talk to someone instead of playing with recorded voice prompts.
by PinotGris
Mon Feb 19, 2024 3:03 am
Forum: Personal Finance (Not Investing)
Topic: TD Bank billpay error
Replies: 14
Views: 1302

TD Bank billpay error

I have a Red Card credit card with Target. Since i got the card last year i got paper statements twice and TD bank bill pay paid them both promptly. Last month i never received a statement and instead got a past due plus a $30 late fee notice plus interest. I immidiately paid the total bill through my TD bank service and it cleared. I also wrote Target to refund my late fee as I never received a statement. I could not even log into my account. When i called Target credit card to talk about it i was still past due. I checked my TD reccord and found it had created a NEW merchant account and paid the money to an account that is not mine. This is becoming a nightmare. Has anyone experienced anything similar? I plan to go to my TD bank directly ...
by PinotGris
Fri Feb 16, 2024 3:57 pm
Forum: Personal Investments
Topic: Tax Efficiency of Taxable Holding
Replies: 12
Views: 2228

Re: Tax Efficiency of Taxable Holding

Hacksawdave wrote: Fri Feb 09, 2024 11:42 am [

The settlement funds are what they are and cannot be changed. This is why I also maintain a state specific tax-exempt MMF with my other municipal funds if I want to park not readily needed cash.
I just discovered the tiny line underneath the settlement account. It gives you a choice to use Vanguard Cash Deposit account. No minimum balance required.
https://investor.vanguard.com/investmen ... sh-deposit
by PinotGris
Fri Feb 09, 2024 1:22 pm
Forum: Personal Investments
Topic: Tax Efficiency of Taxable Holding
Replies: 12
Views: 2228

Re: Tax Efficiency of Taxable Holding

Without knowing tax brackets or balances, three things stand out that I noticed. Wellington Admiral class in a taxable account. This implies a minimum balance of $50,000 to maintain Admiral class. In 2023 the minimum amount on January 1st produced $1,266 in dividends and $2,052 in CGs assuming no reinvestment. Wellington is great in a Roth IRA as I have, but not efficient in a taxable account as the distribution returned 6.04% in a taxable event. I would guess the balance is higher than the bare bones minimum. There is a municipal fund generating tax-exempt income, but also a MMF that is more than twice the size generating ordinary income. This is counterproductive as one offsets the benefits of the other. With OI from SS, pension, RMD and...
by PinotGris
Thu Feb 08, 2024 4:32 pm
Forum: Personal Investments
Topic: Tax Efficiency of Taxable Holding
Replies: 12
Views: 2228

Re: Tax Efficiency of Taxable Holding

Without knowing tax brackets or balances, three things stand out that I noticed. Wellington Admiral class in a taxable account. This implies a minimum balance of $50,000 to maintain Admiral class. In 2023 the minimum amount on January 1st produced $1,266 in dividends and $2,052 in CGs assuming no reinvestment. Wellington is great in a Roth IRA as I have, but not efficient in a taxable account as the distribution returned 6.04% in a taxable event. I would guess the balance is higher than the bare bones minimum. There is a municipal fund generating tax-exempt income, but also a MMF that is more than twice the size generating ordinary income. This is counterproductive as one offsets the benefits of the other. With OI from SS, pension, RMD and...
by PinotGris
Thu Feb 08, 2024 4:16 pm
Forum: Personal Investments
Topic: Tax Efficiency of Taxable Holding
Replies: 12
Views: 2228

Re: Tax Efficiency of Taxable Holding

The last Elfun Tax-exempt Income fund is is not Vanguard. I find as our IRA balances shrink, I need to add bonds to the taxable to keep the AA. So I recently started reinvesting dividends in Elfun. What is your tax bracket? If it is 24% or lower, it's probably better to hold taxable bonds rather than tax-exempt bonds, even in a taxable account; taxable bonds are likely to have a better after-tax yield than munis of comparable risk. (If you are in a high-tax state, use Treasury bonds for the state tax exemption.) If you do want munis, Vanguard's muni funds are less expensive than Elfun's; your portfolio is large enough (1-2% in Wellington Admiral implies a portfolio of at least $2.5-5M) that you should qualify for Admiral shares. 24% tax br...
by PinotGris
Wed Feb 07, 2024 3:50 pm
Forum: Personal Investments
Topic: Tax Efficiency of Taxable Holding
Replies: 12
Views: 2228

Tax Efficiency of Taxable Holding

I need help with the taxable part of our holding - that generates taxable income, so it deviates from the standard form. We are both retired, 73 and 84. Our AA is 60:40 Equity:Bond fund which is creeping up in stock funds. Income from SS, Pension, covers all expenses. Emergency funds are amply covered with income and RMDs. Other than the Elfun Bond fund, all Bond funds are in IRA. THe Roth has VTSAX as well. With prior Boglehead help (Thank you, thank you) I have managed over time to trim our unwieldy holdings to a Boglehead proper holding. My goal now is to get to a 3 fund portfolio but that may not be possible. Instead I am reinvesting all dividends into VTSAX, Total Stock Market. I would like your opinion and recommendations about the ta...
by PinotGris
Sat Feb 03, 2024 7:45 pm
Forum: Personal Investments
Topic: Holdings and Dividends
Replies: 18
Views: 1688

Re: Holdings and Dividends

retire57 wrote: Sat Feb 03, 2024 6:05 pm My taxable VTSAX and VTIAX increased from $13,369 in 2022 to $22,463 in 2023. I guess that's the price one pays for large taxable holdings. I've decided not to worry about it (does no good anyway) and, as someone upthread said, don't let the tax tail wag the dog.
Those are dividends, i presume. I cashed out VTIAX and added to the VTAX. I have been trying to reduce my number of holdings. Looks like that resuls larger returns from larger holding and more taxes. My husband is happy, and he says the same thing about the tax tail . :D
by PinotGris
Sat Feb 03, 2024 5:48 pm
Forum: Personal Investments
Topic: Holdings and Dividends
Replies: 18
Views: 1688

Re: Holdings and Dividends

I think much of it is the fact that investments are going up, so even if the dividend payout stayed the same at 2% or so, you will get more because of the larger balances in each fund. So the only thing you may be doing wrong is not checking your account quarterly or perhaps in early July to get a read on how much you have received so far in dividends so you can adjust your tax payment. Having fewer funds makes this easier to do. And don't forget to check the dividends on your settlement fund if you have a large amount of cash. We could have a repeat of 2022 where about everything went down, but having less total money is not an ideal solution to preventing taxable income. I usually do check the dividend distributions every quarter. But th...
by PinotGris
Sat Feb 03, 2024 3:33 pm
Forum: Investing - Theory, News & General
Topic: "Favor funds with low dividends"
Replies: 15
Views: 1344

Re: "Favor funds with low dividends"

It's my understanding that dividends are just the profits of the corporations owned by shareholders of stocks and mutual funds. When dividends are paid to shareholders, I don't think that the payment of dividends causes the value of the stocks or mutual funds to decrease. So it seems to me like if you are a shareholder of a stock or a mutual fund, you would want the most money you can make it dividends as possible. On pages 123 of the book The Bogleheads Guide to Investing, the authors write "For maximum tax-efficiency in taxable accounts, you should do the following: Favor funds with low dividends." Let's say there are two different mutual funds that are exactly the same in expense ratio and everything else but the first mutual ...
by PinotGris
Sat Feb 03, 2024 11:04 am
Forum: Personal Investments
Topic: Holdings and Dividends
Replies: 18
Views: 1688

Re: Holdings and Dividends

goingup wrote: Sat Feb 03, 2024 8:58 am
PinotGris wrote: Fri Feb 02, 2024 8:51 pm Did everyone get a dividend bonanza or should I be making some changes?
Thank you for any help in sorting this out.
There must be another explanation for you. Have you increased the number of shares you own in these funds?
Yes, because I reinvest dividends in VTSAX and Index 500. I continued to buy VTSAX when the market went down. If I do TLH in one of these I might move the proceeds to other funds such as mid cap and small cap.
It is getting harder to get details of my holdings and distributions for even 2022, and not at all for any prior years. I have to look at my own records and take stock of shares increase and income increase.
Thank you
by PinotGris
Fri Feb 02, 2024 9:19 pm
Forum: Personal Investments
Topic: Holdings and Dividends
Replies: 18
Views: 1688

Re: Holdings and Dividends

Hyperchicken wrote: Fri Feb 02, 2024 8:57 pm Trying to understand the numbers here.

Percentages of funds add up to 93%.

And everything except the first 2 lines are stock funds so that's at least 92% in stocks.

Where do you hold 40% of your portfolio that is bonds?
I might have made some careless rounding errors, but definitely VTSAX and Index 500 are the biggest holdings in that section. WE hold ELFTX Elfun Tax-exempt Muni fund also in it. Our two IRAs hold the rest of the Bond Funds. Roth holds VTSAX.
by PinotGris
Fri Feb 02, 2024 8:51 pm
Forum: Personal Investments
Topic: Holdings and Dividends
Replies: 18
Views: 1688

Holdings and Dividends

I am getting over the shock of how much our dividends have grown this 2023 tax year from the last. Our dividends have doubled (1.84 times) from the previous Tax year in fact. At first I did not believe my 1099 but I have checked it several times with Vanguard site and the numbers don't lie. We created a Family Trust with Vanguard and transferred the taxable account into it this year, during quarter 4, and I thought there must have been some confusion over that. But no. I did not account for this when I estimated taxes to withhold from RMD. We have a large tax bill now. I am in my 70's and my husband is 85, retired for a long time. Our expenses are covered with pension and SS and RMD. No debts. I am wondering if I am doing something wrong wi...
by PinotGris
Thu Feb 01, 2024 12:36 pm
Forum: Investing - Theory, News & General
Topic: Asset allocation strategy
Replies: 37
Views: 3756

Re: Asset allocation strategy

Pensionisten2024 wrote: Thu Feb 01, 2024 7:45 am What is your asset allocation strategy?

Is it 120-age = stock allocation? Or how do you determine your stock allocation?
Before retirement 70:30 Equity:Bond fund
Post 60:40
Why? It has worked well, grown steadily, and we have income from SS and Pension.distributions are reinvested. It will change as we are gradually increasing gifts to children, not maxed yet.
by PinotGris
Wed Jan 31, 2024 6:43 am
Forum: Personal Finance (Not Investing)
Topic: Entering 1099 Div from Vanguard 2023
Replies: 15
Views: 1542

Re: Vanguard 1099-DIV is Different This Year

Prokofiev wrote: Tue Jan 30, 2024 3:46 pm 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.
Does it individually calculate each fund’s percent of qualified dividend? I believe it depends on the holding period. So if I bought shares of VTSAX Dec 15 and distributions were made Dec 30, say, do i need to account for that. Or do i simply take the summary amount of qualified dividends the 1099 provides? Where do i enter this summary total? This is my question.
by PinotGris
Tue Jan 30, 2024 11:43 am
Forum: Personal Finance (Not Investing)
Topic: Entering 1099 Div from Vanguard 2023
Replies: 15
Views: 1542

Entering 1099 Div from Vanguard 2023

The 1099 Div document I downloaded is several pages. Has the format changed? The old ones listed the distribution of dividends and separately listed the qualified dividends in a separate column for each fund. Now I get a summary total of qualified dividends, but not for each fund. Am I to do the calculation myself?
Can I trust Turbo Tax to download and also calculate the qualified dividends?
I am overwhelmed :(
Please help. If you are using Turbo Tax, how are you doing this? Are you letting TT download or entering them yourself?
Thank you.
by PinotGris
Mon Jan 29, 2024 3:48 pm
Forum: Personal Consumer Issues
Topic: What are some of the things that improved YOUR quality of life?
Replies: 254
Views: 41954

Re: What are some of the things that improved YOUR quality of life?

omedus82 wrote: Mon Jan 29, 2024 11:26 am Selling my house and moving into an apartment. Owning a house always felt like a second job to me as there's a never ending "to do" list. Now with my apartment if I have any problem at all I just submit the issue through the app, and it gets dealt with in a couple days. After owning a home I scratch my head as to why home ownership is such an important goal for people.
Sounds heavenly. I think home ownership is part of a finance plan, an investment. Of course it is an investment only when you sell it, I suppose.
by PinotGris
Sun Jan 28, 2024 9:05 pm
Forum: Personal Finance (Not Investing)
Topic: What would you do if you found someone else's lost credit/debit card?
Replies: 42
Views: 3590

Re: What would you do if you found someone else's lost credit/debit card?

I am surprised the bank did not simply lock the card and issued a new card to the customer - after alerting them.
by PinotGris
Sun Jan 28, 2024 8:53 pm
Forum: Personal Investments
Topic: TurboTax form 8606 for Nondeductible IRA
Replies: 12
Views: 1810

Re: TurboTax form 8606 for Nondeductible IRA

I had some time today to tinker with my laptop and getting One Drive disconnected. I checked TurboTax and voila! The 8606 form was corrected and all good now. It is a little slow in catching up, I notice. I was able to export a W2 which was new, did not have to enter all details. That was nice.
I will check if i can download VG tax forms. It as not successful the last time Intried.
by PinotGris
Sat Jan 27, 2024 8:01 am
Forum: Personal Consumer Issues
Topic: What are some of the things that improved YOUR quality of life?
Replies: 254
Views: 41954

Re: What are some of the things that improved YOUR quality of life?

4nursebee wrote: Sat Jan 27, 2024 3:23 am [

How does one eliminate desires?
By learning what desire is and where it arises from :happy.