Search found 14890 matches

by arcticpineapplecorp.
Mon Mar 18, 2024 8:48 pm
Forum: Investing - Theory, News & General
Topic: Vanguard invites clients to lend securities
Replies: 21
Views: 1170

Re: Vanguard invites clients to lend securities

i got the same information in the mail a couple years ago. since i own no individual stocks it was irrelevant to me. Vanguard could have assumed I might have had a brokerage elsewhere with individual stocks, but they were wrong. Wasted money on printing and mailing in my opinion. as long as you understand the risk, you can make the decision yourself. have you considered the risks and what do you think? I have done securities lending with ETFs before; unless something is different from Vanguard's offering, it should work without individual holdings. oh, they don't specifically mention etfs in their page here: https://investor.vanguard.com/campaign/earn-additional-income-on-securities-you-hold?cmpgn=RIG:EM:CMPGN:WMENG:05232023:TXL:EM_letter:...
by arcticpineapplecorp.
Mon Mar 18, 2024 3:46 pm
Forum: Personal Consumer Issues
Topic: Is sewer insurance advisable when renting a house?
Replies: 6
Views: 427

Re: Is sewer insurance advisable when renting a house?

have you read your renter's insurance policy? Is there a clause that would disallow use of renters insurance in the situation of a sewer line break? If you're not sure, have you called your insurer to see if you're insured and don't need this (in your situation as a renter with renter's insurance) superfluous coverage?
by arcticpineapplecorp.
Mon Mar 18, 2024 3:43 pm
Forum: Investing - Theory, News & General
Topic: Vanguard invites clients to lend securities
Replies: 21
Views: 1170

Re: Vanguard invites clients to lend securities

i got the same information in the mail a couple years ago.

since i own no individual stocks it was irrelevant to me.

Vanguard could have assumed I might have had a brokerage elsewhere with individual stocks, but they were wrong. Wasted money on printing and mailing in my opinion.

as long as you understand the risk, you can make the decision yourself.

have you considered the risks and what do you think?
by arcticpineapplecorp.
Sat Mar 16, 2024 2:52 pm
Forum: Personal Investments
Topic: Please check my thinking about changing my Roth account from VTIAX to VTSAX
Replies: 42
Views: 3421

Re: Please check my thinking about changing my Roth account from VTIAX to VTSAX

after retiring I got rid of all my international stock. I didn't want to take currency risk and I became aware of a new risk, country removal risk. All of my Russian holdings went to 0 overnight. They have a pretty small weighting in vxus but china does not... for those reasons and the lower returns and higher volatility over the last FOUR DECADES I don't regret dumping the international. https://www.portfoliovisualizer.com/backtest-asset-class-allocation?s=y&sl=6Vsa1UalFZeg7nOkmEzvrB #1 China does make up a small weighting in vxus, just 6.7% https://i.postimg.cc/C59LhSyK/vxus.jpg #2 China makes up just 2.5% of the total world stock market: https://i.postimg.cc/2ShFf5pV/vt.jpg So if you own the world (and this is just stocks mind you) ...
by arcticpineapplecorp.
Sat Mar 16, 2024 2:52 pm
Forum: Personal Investments
Topic: Please check my thinking about changing my Roth account from VTIAX to VTSAX
Replies: 42
Views: 3421

Re: Please check my thinking about changing my Roth account from VTIAX to VTSAX

I’ve finally noticed that VTIAX consistently underperforms VTSAX. 1) If you are looking at what has recently performed better and using that as your guide for how to invest, then you are performance chasing or market timing. Those are losing strategies. This doesn't mean you can't change your ROTH tIRA allocation, I just suggest doing so for other reasons. 2) I read this post when I want to remember why I'm at world market weight. I don't know what will perform better next https://www.bogleheads.org/forum/viewtopic.php?f=10&t=409214&newpost=7399762 You might consider getting to 60/40 in both tax advantaged accounts. 3) On the bottom line section of the following, I think you are on step 7. https://www.whitecoatinvestor.com/asset-lo...
by arcticpineapplecorp.
Sat Mar 16, 2024 2:36 pm
Forum: Personal Finance (Not Investing)
Topic: Older jobless sibling with a daughter and an inheritance - thoughts on managing it
Replies: 31
Views: 2718

Re: Older jobless sibling with a daughter and an inheritance - thoughts on managing it

this likely won't work for three reasons: 1. the amount of the inheritance may not be enough to "buy the house" (unless it's being sold for less than FMV). 2. the amount of the inheritance may be a result of selling the house, so there's no money for brother until house gets sold. (don't know, OP didn't specify unless i misread). 3. even if the brother was able to buy the house with the inheritance money (assuming there's other money coming to him not as a result of selling house), then what? How does brother pay utilities, food, taxes, insurance, repairs and so on? With what money? He doesn't work and would have spent the money to buy the house. How does he then STAY in the house thereafter? to the OP, another question is, do yo...
by arcticpineapplecorp.
Fri Mar 15, 2024 7:50 pm
Forum: Personal Finance (Not Investing)
Topic: Older jobless sibling with a daughter and an inheritance - thoughts on managing it
Replies: 31
Views: 2718

Re: Older jobless sibling with a daughter and an inheritance - thoughts on managing it

The will may say that the house is to be sold, but that doesn't mean that it has to be sold to a stranger. Maybe your brother wants to stay in the house. Let him buy it with his portion of the inheritance. this likely won't work for three reasons: 1. the amount of the inheritance may not be enough to "buy the house" (unless it's being sold for less than FMV). 2. the amount of the inheritance may be a result of selling the house, so there's no money for brother until house gets sold. (don't know, OP didn't specify unless i misread). 3. even if the brother was able to buy the house with the inheritance money (assuming there's other money coming to him not as a result of selling house), then what? How does brother pay utilities, foo...
by arcticpineapplecorp.
Fri Mar 15, 2024 7:35 pm
Forum: Personal Investments
Topic: Please check my thinking about changing my Roth account from VTIAX to VTSAX
Replies: 42
Views: 3421

Re: Please check my thinking about changing my Roth account from VTIAX to VTSAX

I’ve finally noticed that VTIAX consistently underperforms VTSAX. This means that my tIRA is growing faster than my Roth. And as I move past 75 yo, my RMDs are getting fatter. So I thought what I should do is trade out all the VTIAX in my Roth for VTSAX and, at the same time, swap out a comparable amount of the VTSAX in my tIRA for VTIAX. This way the growth in the Roth would likely improve while the growth in my tIRA would likely be a bit lower – and my RMDs would not increase as quickly. But I would still have the same diversification as I do now. In other words, the growth would be the same as if I left everything as is, but it would be in different accounts. Does this make sense to you? Am I overthinking this? Or am I missing something...
by arcticpineapplecorp.
Fri Mar 15, 2024 7:28 pm
Forum: Personal Finance (Not Investing)
Topic: Which debt should I tackle first?
Replies: 6
Views: 528

Re: Which debt should I tackle first?

I want to start getting aggressive with my mid-level interest debts. However, I'm waffling over which loan to start getting aggressive with first. I wanted to ask the forum of people smarter than myself which one to tackle first. Both loans have nearly equal amounts of principal left: HELOC: 10.24 % pool loan: 8.49 % The HELOC has a higher interest rate and payment, but that interest is tax deductible, which is the cause of my indecision. I've seen terms like "effective interest rate," but I don't understand the math behind calculating that. Which loan should I start aggressively paying down first? Or, am I overthinking this, and all debt is bad, so whichever one I choose to get aggressive with is a good idea? the interest is onl...
by arcticpineapplecorp.
Fri Mar 15, 2024 6:42 pm
Forum: Personal Finance (Not Investing)
Topic: Which debt should I tackle first?
Replies: 6
Views: 528

Re: Which debt should I tackle first?

I want to start getting aggressive with my mid-level interest debts. However, I'm waffling over which loan to start getting aggressive with first. I wanted to ask the forum of people smarter than myself which one to tackle first. Both loans have nearly equal amounts of principal left: HELOC: 10.24 % pool loan: 8.49 % The HELOC has a higher interest rate and payment, but that interest is tax deductible, which is the cause of my indecision. I've seen terms like "effective interest rate," but I don't understand the math behind calculating that. Which loan should I start aggressively paying down first? Or, am I overthinking this, and all debt is bad, so whichever one I choose to get aggressive with is a good idea? the interest is onl...
by arcticpineapplecorp.
Fri Mar 15, 2024 6:40 pm
Forum: Investing - Theory, News & General
Topic: Index Investing Basics - Revisited
Replies: 125
Views: 7910

Re: Index Investing Basics - Revisited

I think Warren is famous for saying when he dies he's gonna leave a lot to charity and the rest he says he'll just put in a trust for his elderly wife. The AA of that trust? 100% 500 index and nothing else. That said, I imagine it's a pretty big chunk that even short term losses won't damage. There's also his famous 500 index bet to look into if you're curious. https://www.youtube.com/watch?v=myNWXjQD11w not quite 100%: Such was the case with Warren Buffett’s 2013 letter to Berkshire Hathaway investors, which seemed to challenge one of the longstanding axioms about retirement planning. Buffett noted that upon his death, the trustee of his wife’s inheritance was instructed to put 90% of her money into a very low-fee stock index fund and 10%...
by arcticpineapplecorp.
Fri Mar 15, 2024 1:27 pm
Forum: Investing - Theory, News & General
Topic: Index Investing Basics - Revisited
Replies: 125
Views: 7910

Re: Index Investing Basics - Revsited

bobsmith wrote: Wed Mar 13, 2024 11:31 am I guess I'm having a hard time accepting that this bond fund of AAA bonds LOST over 13% in 2022 and has had five years of negative returns over the last 15 years (including this year).
5 years? I go back to 2008 if you're saying 15 years (I know that's 16 but wanted to show 2008!) and I see 4 negative years, not 5:

Image

source: https://www.portfoliovisualizer.com/bac ... Od7ft8qUQt

but what i also see is the magnitude of losses of stocks compared to bonds.
by arcticpineapplecorp.
Thu Mar 14, 2024 7:58 pm
Forum: Personal Finance (Not Investing)
Topic: Inherited Stretch Annuity?
Replies: 14
Views: 1110

Re: Inherited Stretch Annuity?

seems legit: https://www.investopedia.com/terms/s/stretchannuity.asp regarding the taxability, growth is taxed, return of principal is not. * Distributions from the annuity will be recalculated annually based on account value and life expectancy of the beneficiary. • Distribution frequency must be set for monthly, quarterly, semiannual, or annual distributions. Once elected, the frequency of distribution cannot be changed. • Fidelity will provide an annual Form 1099, which will indicate the portion of the distribution that is reportable as income for that year.4 (See Tax Exclusion Ratio example.) • Beneficiaries may not make additional payments into the contract, take ad hoc distributions, or make changes to the amount distributed. • Benefi...
by arcticpineapplecorp.
Wed Mar 13, 2024 4:19 pm
Forum: Investing - Theory, News & General
Topic: Is Raymond James beating the SP500? That's what they are claiming.
Replies: 59
Views: 4603

Re: Is Raymond James beating the SP500? That's what they are claiming.

dkturner wrote: Wed Mar 13, 2024 2:55 pm Only three of the firms produced positive Alpha. That should tell you all you need to know about active management outperforming an index.
good point. And not only are the majority of firms underperforming, there's also a truth that with active management often the first shall be the last. Often past outperformers become future underperformers. Bogle wrote a chapter on this in his little book of commonsense investing. I'd assume it applies just as well to Active Fund holding companies (like Raymond James) as it does to active mutual funds themselves:

Image
by arcticpineapplecorp.
Wed Mar 13, 2024 4:16 pm
Forum: Investing - Theory, News & General
Topic: Is Raymond James beating the SP500? That's what they are claiming.
Replies: 59
Views: 4603

Re: Is Raymond James beating the SP500? That's what they are claiming.

So I am 100% a follower of the Boglehead philosophy and 100% invested in Vanguard stocks. However, my brother is invested in Rayomend James and keep saying they beat the SP500 and that I am crazy. Today I found this on their web site. What is going on here? Is this real or am I missing something? " First, the average return for Raymond James' recommended stocks (13.98%) is over 4.5 percentage points higher per year than the return on the S&P 500 (9.35%), and more than 5.5 percentage points higher per year than the average return for the recommendations of the other brokerage firms (8.17%). " Let your brother squander his money. It is just the destiny of many. squander? He's a real job creator (creating jobs for Raymond James)...
by arcticpineapplecorp.
Wed Mar 13, 2024 4:04 pm
Forum: Personal Investments
Topic: Is it Too Late to Invest in VTI?
Replies: 126
Views: 19018

Re: Is it Too Late to Invest in VTI?

You could share the following: “Far more money has been lost by investors in preparing for corrections, or anticipating corrections, than has been lost in the corrections themselves.”--Peter Lynch source: https://www.etf.com/sections/index-investor-corner/swedroe-better-face-correction?nopaging=1 If only that would help. Unfortunately FIL has not asked for help and so I'm staying out of it. I don't know the specifics of his situation, but he did work till 72 because he couldn't afford to retire earlier, despite working as an engineer and having a full career without any unemployment. He also currently owes more on his house then the initial purchase price, despite living there for 40 years. When he retired he was so excited to roll his 401...
by arcticpineapplecorp.
Wed Mar 13, 2024 10:56 am
Forum: Investing - Theory, News & General
Topic: Is Raymond James beating the SP500? That's what they are claiming.
Replies: 59
Views: 4603

Re: Is Raymond James beating the SP500? That's what they are claiming.

Is beating or has beat?

we only know what they did, we don't know what they will do. So any claim that they're "beating" the market doesn't make sense because the future is unknown. It may be true that the "have beat" the market over a time period in the past (though this is doubtful once you account for fees and taxes, which nobody ever does) but that's not important. You want to know if they "will beat" the market going forward. My crystal ball is cloudy. What is guaranteed when you own the market is that you'll get the return of the market minus costs. Because it's practically free to own the market, you'll get the market's return over time. Active management can make no such guarantee.
by arcticpineapplecorp.
Wed Mar 13, 2024 9:19 am
Forum: Personal Investments
Topic: Is it Too Late to Invest in VTI?
Replies: 126
Views: 19018

Re: Is it Too Late to Invest in VTI?

But you really only got 3.6% a year. It was a lie. A fake guarantee.. I have no idea why this is still legal. This was just an example... I don't know what your actual numbers are... But this example is pretty accurate... This is how they get you. This is very common. My father-in-law, AND my wife (before I met her) had accounts like this. It's not real... Insurance companies CANNOT guarantee 8.25% a year return when Treasuries are paying 5%. Use common sense. It's a lie. because the insurance companies are regulated by the insurance industry. kinda like the fox watching the henhouse. could be different if it was able to be held to account by cfpb but the insurance industry got a special carve out from having to answer to the cfpb. Money t...
by arcticpineapplecorp.
Wed Mar 13, 2024 9:16 am
Forum: Personal Investments
Topic: Is it Too Late to Invest in VTI?
Replies: 126
Views: 19018

Re: Is it Too Late to Invest in VTI?

Jovby wrote: Thu Feb 22, 2024 7:30 pm My FIl jumped out of the market in Mar 2020 at the beginning of the pandemic. He congratulated himself on dodging the market crash He was sure would hit everyone else.

Unfortunately (for him) the market kept going up from there and he never found a good time to get back in. The market today is double what it was then and he’s lost out on a lot.
You could share the following:
“Far more money has been lost by investors in preparing for corrections, or anticipating corrections, than has been lost in the corrections themselves.”--Peter Lynch

source: https://www.etf.com/sections/index-inve ... nopaging=1
by arcticpineapplecorp.
Tue Mar 12, 2024 9:36 pm
Forum: Personal Investments
Topic: "Rich Man's Roth" / 7702
Replies: 37
Views: 5439

Re: "Rich Man's Roth" / 7702

it's just IUL/permanent life insurance. It’s important to consider some potential drawbacks. First, permanent life insurance policies often come with higher premiums compared to other investment vehicles. Additionally, while permanent life insurance policies offer tax advantages, such as tax-deferred growth and tax-free death benefit proceeds, they are subject to certain limitations and complexities. Understanding the policy’s terms, fees, and potential surrender charges is essential to make informed decisions. Moreover, the cash value accumulation within the permanent life insurance policy may be affected by insurance costs, administrative fees, and policy expenses. It’s crucial to carefully evaluate the policy’s costs and projected return...
by arcticpineapplecorp.
Tue Mar 12, 2024 9:22 pm
Forum: Personal Finance (Not Investing)
Topic: Why my mom will continue to need a financial advisor
Replies: 23
Views: 2084

Re: Why my mom will continue to need a financial advisor

Google “VITA tax sites near me” (or near your mom). Free tax prep if your income is under $40k single, $65k larger households. I did a tax return for a 93-year-old last Saturday. Thanks, looks like the closest site is the Rossmoor community center, which is walkable. She might not meet the income limit for some of the years. It depends on how much distribution she gets. I don't suppose they accept payment if it's over? here's the TCE locator (no income limits, just need to be over a certain age; your mom qualifies): https://irs.treasury.gov/freetaxprep/ here's an aarp locator (same deal as above): https://www.aarp.org/money/taxes/aarp_taxaide/locations.html I do VITA, but there's an income limit (unless you have friends or family who are V...
by arcticpineapplecorp.
Tue Mar 12, 2024 9:11 pm
Forum: Personal Finance (Not Investing)
Topic: Schedule D -- Turbotax Premier
Replies: 21
Views: 1702

Re: Schedule D -- Turbotax Premier

i don't use turbotax but from reading around it appears the deluxe gives you help completing the schedule D but perhaps you don't need assistance. In that case did you try: We'll automatically generate and fill out Schedule D when you report 1099-Bs and other capital asset sales: Open (continue) your return if it's not already open. Search for Schedule D and select the Jump to link at the top of the search results. Answer Yes to Did you sell any of these investments in 2023? OR Okay! if you see Time to kick off your investments! Follow the on-screen instructions to enter your capital asset sale(s). If these include stock, we'll also fill out Form 8949 for you. https://ttlc.intuit.com/turbotax-support/en-us/help-article/small-business-proces...
by arcticpineapplecorp.
Mon Mar 11, 2024 6:41 pm
Forum: Investing - Theory, News & General
Topic: Vectors -- March edition
Replies: 1
Views: 407

Re: Vectors -- March edition

thanks. there were some really good graphs/charts in this month's edition. A gem as usual. Thanks for passing it on Taylor.
by arcticpineapplecorp.
Mon Mar 11, 2024 6:36 pm
Forum: Personal Finance (Not Investing)
Topic: Helping parent payback student loan
Replies: 1
Views: 343

Re: Helping parent payback student loan

have you checked to see if his payments can be lowered: First, check if you qualify for lower payments Consolidating your Parent PLUS loan will make you eligible for the Income-Contingent Repayment (ICR) plan. Use the Education Department’s Loan Simulator to estimate your payment on the ICR plan. The minimum payment on ICR is just $5. source:https://www.consumerfinance.gov/paying-for-college/repay-student-debt/federal-parent-plus-loans/#off-track i'm assuming there was no possibility of qualifying for PSLF? Once you’re on ICR, you can pursue Public Service Loan Forgiveness. I'm not sure how SS affects things, if anything I would think that would help. As an example, at recertification you can upload your tax return to verify your income. If...
by arcticpineapplecorp.
Mon Mar 11, 2024 6:23 pm
Forum: Personal Investments
Topic: Thinking of Switching From Big Name Manager to Vanguard
Replies: 11
Views: 1432

Re: Starting the SSRI Paperwork

I am in this current position.... I have half of our retirement investments with a manager. The other half is in my 401k. It's a mix of investment options. I am feeling a need to move from the manager to Vanguard, including the 401k. Trouble trying to understand how to position investment. I do not understand the products. Will a PAS with Vanguard give me a good foundation of understanding and decision making? did you ask them to answer these questions/confusions you have? I believe you're entitled to a free consultation. If you don't have confidence you understand the answers to your questions, you don't have to change anything. Though even though you fear costs as a result of changing, there can be costs for not changing too. do you have...
by arcticpineapplecorp.
Sun Mar 10, 2024 9:39 pm
Forum: Investing - Theory, News & General
Topic: Emerging markets flat
Replies: 57
Views: 4317

Re: Emerging markets flat

TimeIsYourFriend wrote: Sun Mar 10, 2024 10:55 am It's this dance that investors do that ruin their portfolios. They see something doing poorly for years and wash their hands of it, selling low. Then later it explodes upwards, they get the FOMO (Fear of Missing Out) and buy high. It happens not just with stuff like crypto but also actual sane assets like international stocks.
this and people think 15 years is a long time. people have not the slightest idea what it means to be patient, and investing requires great patience. Investing is more about temperament than anything. We've seen this movie before. People swore off stocks in 2009 after a decade of poor performance, just in time to miss the runup thereafter.
by arcticpineapplecorp.
Sun Mar 10, 2024 9:30 pm
Forum: Personal Consumer Issues
Topic: Turbotax: IP PIN missing error
Replies: 3
Views: 564

Re: Turbotax: IP PIN missing error

If you received e-file reject code IND-181-01, it's because this year's IP PIN was missing from your return. To resolve this, start by finding your 6-digit IP PIN: This will be on the CP01A letter you received in December or January for your 2023 taxes. PINs for prior tax years won't work. To resolve this, start by finding your 6-digit IP PIN: This will be on the CP01A letter you received in December or January for your 2023 taxes. PINs for prior tax years won't work If you lost your letter or never received one, retrieve your IP PIN online at the IRS website If you're unable to retrieve your IP PIN online, you can have it reissued (allow up to 21 days) Once you have retrieved your PIN, select your version of TurboTax below for instruction...
by arcticpineapplecorp.
Sat Mar 09, 2024 8:37 pm
Forum: Personal Finance (Not Investing)
Topic: Help for sister on social security during assisted living spend down
Replies: 13
Views: 2056

Re: Help for sister on social security during assisted living spend down

She could have had unexpected medical expenses that ate through her savings after she qualified for the facility. maybe if she doesn't have a medigap plan or isn't on an advantage plan, i.e., is stuck paying 20% of large medical bills. But even without that, shouldn't the facility have assessed her ability to pay for 2 years? If she has little savings and only SS most assisted living facilities charge more than one's SS. So they would have had to know she'd dip into savings to cover a monthly shortfall and wouldn't have enough to cover 2 years. You can get on a payment plan for a medical bill, but she's required to pay rent so if she had savings, she wouldn't/shouldn't have spent that on a medical bill if it was needed to supplement SS to ...
by arcticpineapplecorp.
Sat Mar 09, 2024 8:32 pm
Forum: Personal Investments
Topic: Fidelity advice
Replies: 67
Views: 8018

Re: Fidelity advice

Zipster wrote: Fri Mar 08, 2024 9:43 am
NHRATA01 wrote: Fri Mar 08, 2024 9:18 am maybe Fido makes anyone a VP?
My cousin was a VP at a bank everyone has heard of. He was basically the account manager for their account with a big-box retailer that had a branded credit card through that bank. He said that his job was basically to take store managers out to lunch to keep them happy. He had no financial training whatsoever.
nice work if you can get it.
by arcticpineapplecorp.
Sat Mar 09, 2024 8:17 pm
Forum: Personal Finance (Not Investing)
Topic: Help for sister on social security during assisted living spend down
Replies: 13
Views: 2056

Re: Help for sister on social security during assisted living spend down

My sister is on social security and has a little in savings (~20k) and must do a 2 year spend down in order to stay at an asisted living facility in her community. She does not have enough money to cover her expenses for two years before she can have medicaid asisted living there. If I pay part of her asisted living expenses each month will it be considered income and decrease her social security? i don't understand. how did she get into an assisted living facility if she didn't have enough money to pay for 2 years? Didn't they know whether she had ability to pay for the required 2 years or not before they accepted her? did you see there are different programs through medicaid for people in assisted living that vary by State, along with th...
by arcticpineapplecorp.
Sat Mar 09, 2024 5:36 pm
Forum: Personal Investments
Topic: Should bond index funds still be part of our asset allocation?
Replies: 16
Views: 1477

Re: Should bond index funds still be part of our asset allocation?

Hi All, Is the Boglehead conventional wisdom still to have bond index funds as part of our asset allocation? Been seeing a lot of negativity lately regarding bond index funds and how volatility is not that much less than stock index funds. Just wanted to take others temperature on this. Thanks! when it comes to investing, people are always driving while looking in the rear view mirror. Not a good idea, right? People suffer from recency bias. They look at what happened recently and extrapolate into the future as if what was true for yesterday will be true for tomorrow. Nothing could be further from the truth. Often it's the other way around. Bad past markets often pave the way for future good markets and vice versa. There was a funny story ...
by arcticpineapplecorp.
Fri Mar 08, 2024 9:04 pm
Forum: Personal Finance (Not Investing)
Topic: Tax-Deductibility of LTC
Replies: 7
Views: 904

Re: Tax-Deductibility of LTC

I have read that withdrawals from a 401k or 403b are not tax-deductible if used for LTC expenses, but withdrawals form a traditional IRA are deductible for that portion that exceeds 7.5% of AGI. Does this mean it may make sense to do an IRA rollover with a portion of one's 401k/403b for this purpose? This is purely hypothetical - for planning purposes. can you show us what you mean by this? When you're talking about the portion that exceeds 7.5% of AGI I think you're just talking about itemizing deductions. In which case whether you withdraw from IRA or 401k (both pretax) you'll be taxed on the ordinary income from these withdrawals, but then long term care expenses paid (above 7.5% of AGI) can be used as an itemized deduction. If total of...
by arcticpineapplecorp.
Fri Mar 08, 2024 8:48 pm
Forum: Personal Investments
Topic: Checkup: I'm way behind. Hope for late bloomers?
Replies: 42
Views: 5387

Re: Checkup: I'm way behind. Hope for late bloomers?

here's a book by boglehead Steve Schullo and Dan Robertson called Late Bloomer Millionaires

I think at least Steve was a public school teacher.
by arcticpineapplecorp.
Fri Mar 08, 2024 2:31 pm
Forum: Investing - Theory, News & General
Topic: Why is Vanguard so bullish on international exposure in their all-in-one funds?
Replies: 77
Views: 6557

Re: Why is FIDELITY so bullish on international exposure in their all-in-one funds?

Why is Vanguard more aggressive when it comes to international equity / debt exposure in their all-in-one funds (target date, lifestrategy) than most other investment management company's are? I looked at the equity portfolios of a handful of all-in-one style target date funds to compare the amount of their equity portfolios dedicated to international exposure and Vanguard is definitely one of the outliers. Vanguard's Lifestrategy Funds also push a similarly high level of international exposure. Here's how the TDFs I looked at compared: FIDELITY FREEDOM 2060 → 55% US / 45% INT VANGUARD TARGET 2060 → 60% US / 40% INT TIAA-CREF LIFECYLCE 2060 → 65% US / 35% INT T. ROWE PRICE 2060 → 68% US / 32% INT SCHWAB TARGET 2060 → 68% US / 32% INT AMERI...
by arcticpineapplecorp.
Fri Mar 08, 2024 10:19 am
Forum: Investing - Theory, News & General
Topic: William Bernstein On the Financial Industry
Replies: 81
Views: 9773

Re: William Bernstein On the Financial Industry

He also wrote:
“99% of fund managers demonstrate no evidence of skill whatsoever and you were engaged in a life and death struggle with the financial services industry. If you act on the assumption that every broker, insurance salesman and financial adviser you encounter is a hardened criminal, you will do just fine.”

source: https://www.whitecoatinvestor.com/four- ... dcast-107/
by arcticpineapplecorp.
Thu Mar 07, 2024 9:10 am
Forum: Personal Investments
Topic: Funds’ review help - smells like a ripoff
Replies: 15
Views: 1710

Re: Funds’ review help - smells like a ripoff

Well, in some ways, is this better than bonds? it depends and i'm not sure i'm qualified to answer that but perhaps people more knowledgable than me can answer that in more advanced ways. if you're hedging with options or bonds/cash then yes that's a drag on returns in one sense, but could lead to higher risk adjusted returns (period dependent. I showed two charts above, one where this strategy had higher risk adjusted returns and the other where it didn't). but i'm concerned about the cap being offered. I may be reading this wrong and maybe it's not the same type of cap that annuity products (like equity indexed annuities) offer where you don't get all the upside of the stock market's return because the insurer is capturing the rest in ex...
by arcticpineapplecorp.
Wed Mar 06, 2024 9:26 pm
Forum: Personal Investments
Topic: Funds’ review help - smells like a ripoff
Replies: 15
Views: 1710

Re: Funds’ review help - smells like a ripoff

First of all, wow, thank you for such detail analysis. My friend doesn’t understand finances AT ALL. She’s very afraid of losing money and pushes herself to not leave it under the mattress. Hence why this “advisor” recommended this product. thanks. don't mention it. show it to your friend and see what she thinks. it's ok if she doesn't understand some of it. Warren Buffett didn't understand CDOs...but he was smart enough to not buy something he didn't understand. Did you or she read the risk considerations part of the links you provided? (this is only a couple paragraphs, but i thought important enough to share. There are many more risks if you continue reading: A fund that uses FLEX Options to employ a "target outcome strategy" ...
by arcticpineapplecorp.
Wed Mar 06, 2024 9:16 pm
Forum: Personal Investments
Topic: Funds’ review help - smells like a ripoff
Replies: 15
Views: 1710

Re: Funds’ review help - smells like a ripoff

basically these funds are using options to hedge the downside risk. So they are supposed to not perform as bad as the market when the market falls. However, it appears to me there's a cap on performance which I believe means they don't get the return of the market: The investment objective of the FT Vest U.S. Equity Enhance & Moderate Buffer ETF - March (the "Fund") is to seek to provide investors with returns (before fees and expenses) of approximately twice any positive price return of the SPDR® S&P 500® ETF Trust (the "Underlying ETF"), up to a predetermined upside cap of 13.01% while providing a buffer (before fees and expenses) against the first 15% of Underlying ETF losses, over the period from March 20, 20...
by arcticpineapplecorp.
Wed Mar 06, 2024 7:05 pm
Forum: Personal Investments
Topic: Is this account a 403b? move or liquidate?
Replies: 6
Views: 548

Re: Is this account a 403b? move or liquidate?

yeah it's a 403b, but is the fund in an annuity or not? this is a conservative fund (30%-50% equity), but it says on the fact sheet: Available in Portfolio Director Fixed and Variable Annuity Variable annuities are long-term, tax deferred vehicles that offer investment options through subaccounts and insurance features such as annuitization and death benefit options. Investors should consider the investment objectives, risks, charges and expenses of each underlying mutual fund carefully before investing. Both the contract prospectus and underlying mutual fund prospectus contain this and other information. The contract prospectus and underlying fund prospectus should be read carefully before investing. To request a prospectus, talk with your...
by arcticpineapplecorp.
Wed Mar 06, 2024 6:52 pm
Forum: Personal Finance (Not Investing)
Topic: Tax Question: Pennsylvania vs Federal
Replies: 1
Views: 263

Re: Tax Question: Pennsylvania vs Federal

don't know if the computers match up with federal, so it seems your choices are either:
1. wait to see if nasty gram arrives and you have your corrected 1099 to verify changes made after return was filed/accepted.
2. file an amended PA return based on corrected 1099
by arcticpineapplecorp.
Wed Mar 06, 2024 6:48 pm
Forum: Personal Consumer Issues
Topic: deferring or not paying capital gains on a rental sale?
Replies: 4
Views: 862

Re: deferring or not paying capital gains on a rental sale?

So I only have to keep the property for 5 years and I get to avoid capital gains ? If I plan on living in the 1031 exchange for 20 to 30 years I am good? you should probably consult with a tax expert to make sure you understand the tax implications of whatever you're trying to do. A 1031 exchange has rules that need to be followed or won't qualify. Are you aware of all the rules of the 1031 exchange? Beware of schemes Taxpayers should be wary of individuals promoting improper use of like-kind exchanges. Typically they are not tax professionals. Sales pitches may encourage taxpayers to exchange non-qualifying vacation or second homes. Many promoters of like-kind exchanges refer to them as “tax-free” exchanges not “tax-deferred” exchanges. T...
by arcticpineapplecorp.
Wed Mar 06, 2024 4:22 pm
Forum: Personal Investments
Topic: 401 Khaos [Change in employment. How to manage 401(k)s?]
Replies: 17
Views: 1463

Re: 401 Khaos

1. Maybe. If the fees are low and you have access to good investments then it might be best to leave them for the better Federal bankruptcy protections. State IRA protections vary. 2. I would, but this might mean rolling other plans to the best workplace or the new workplace plan, depending on which one is best (lowest fees, best investments, most convenient for managing with the rest of your investments). 3. Not sure what you mean here. Smart in terms of what? 4. Mostly just convenience. You might get some small benefit (most likely a dedicated service representative or higher tier support) if you have enough total assets with one firm. 5. Haven't heard of it and even if anyone has heard of it that doesn't really mean anything. I've had V...
by arcticpineapplecorp.
Wed Mar 06, 2024 4:03 pm
Forum: Personal Investments
Topic: 401 Khaos [Change in employment. How to manage 401(k)s?]
Replies: 17
Views: 1463

Re: 401 Khaos

Lots going on here and looking for some sage advice. Here’s the scoop: 1. I have a sizable 401k after 22 years with one company and was just recently laid off. 401k is with Alight. 2. My wife is leaving a company and will join a new company in May. She has a sizable 401k rollover with Fidelity, a smaller one with Voya that will be eligible for rollover, and a very small TIAA CREF 403b account. 3. We collectively have exponentially more 401k $ than Roth $. My questions are as follows: 1. Is it best to rollover the 401k’s when eligible to do so? 2. Should we be thinking about consolidating them in one place, ie, Fidelity, Vanguard, etc, or spread them out? 3. Are there any smart ways to convert to Roth? 4. Are there benefits to bundling all ...
by arcticpineapplecorp.
Wed Mar 06, 2024 3:53 pm
Forum: Personal Finance (Not Investing)
Topic: Help with Section 199A Dividends and Form 8995
Replies: 15
Views: 928

Re: Help with Section 199A Dividends and Form 8995

have you read the instructions at the irs: https://www.irs.gov/instructions/i8995

are you doing taxes by hand because most tax software can easily figure out the deduction and put it on your 1040 in the right place?
by arcticpineapplecorp.
Wed Mar 06, 2024 3:49 pm
Forum: Investing - Theory, News & General
Topic: Teaching wealth building as a new career
Replies: 28
Views: 3586

Re: Teaching wealth building as a new career

have you looked into next gen personal finance? It could assist in your educating young people.
by arcticpineapplecorp.
Wed Mar 06, 2024 3:28 pm
Forum: Personal Investments
Topic: IRA Conversion Question
Replies: 10
Views: 1149

Re: IRA Conversion Question

no, a conversion is not a RMD. You can convert even if you are not required to take an RMD. You can also make conversions after you are required to take RMDs (though you have to take your RMD first when that time comes, i.e., a conversion doesn't count towards a RMD. A QCD though can count towards the RMD). One benefit of converting before you get to RMD age is when you do get to RMD age, your RMDs will likely be lower than they would have been had you not converted.
by arcticpineapplecorp.
Wed Mar 06, 2024 2:04 pm
Forum: Personal Investments
Topic: V nixes leveraged ETF
Replies: 11
Views: 854

Re: V nixes leveraged ETF

cosmos wrote: Wed Mar 06, 2024 11:44 am
nisiprius wrote: Wed Mar 06, 2024 11:28 am
cosmos wrote: Wed Mar 06, 2024 11:14 am...I also agree that you should be able to do what you want to do but so should the companies...
An example of a business decision that restricts customer choice: Robinhood doesn't "allow" its customers to buy mutual funds.
I guess that is their choice just like it is mine to not use them. I personally do not see the appeal of alot of the new mobile first or mobile only firms but the younger folks do and that is great for them.
sure is. they get confetti thrown everytime they place a trade.
by arcticpineapplecorp.
Tue Mar 05, 2024 9:17 pm
Forum: Personal Investments
Topic: 1099 R - Roth IRA conversion and closure
Replies: 10
Views: 1179

Re: 1099 R - Roth IRA conversion and closure

Geologist wrote: Tue Mar 05, 2024 9:11 pm The problem is that his description is not that he disposed of his traditional IRA, but that he disposed of his Roth IRA. Withdrawing the funds from the Roth IRA didn't solve the problem, because Roth conversions cannot be undone. Therefore, first, the pro-ration taxation will still occur.

Then there is the question of whether closing the Roth IRA (withdrawing the funds) created its own mess, potentially with taxes/penalties.
oh, i totally missed he cashed out the Roth, not the traditional. :oops:

why didn't the OP just cash out the traditional IRA? I understand if it was a large IRA that could not make sense, but $30,000?
by arcticpineapplecorp.
Tue Mar 05, 2024 9:12 pm
Forum: Personal Consumer Issues
Topic: deferring or not paying capital gains on a rental sale?
Replies: 4
Views: 862

Re: deferring or not paying capital gains on a rental sale?

nope, not since 2004 (and you're describing a 1031 exchange, by the way): Moving Into a 1031 Swap Residence If you want to use the property for which you swapped as your new second or even principal home, you can’t move in right away. In 2008, the IRS set forth a safe harbor rule, under which it said it would not challenge whether a replacement dwelling qualified as an investment property for purposes of Section 1031. To meet that safe harbor, in each of the two 12-month periods immediately after the exchange: You must rent the dwelling unit to another person for a fair rental for 14 days or more. Your personal use of the dwelling unit cannot exceed the greater of 14 days or 10% of the number of days during the 12-month period that the dwel...
by arcticpineapplecorp.
Tue Mar 05, 2024 8:56 pm
Forum: Personal Investments
Topic: 1099 R - Roth IRA conversion and closure
Replies: 10
Views: 1179

Re: 1099 R - Roth IRA conversion and closure

Under the "cautions" section of https://www.bogleheads.org/wiki/Backdoor_Roth it talks about one option is to convert the entire IRA to Roth but after the three options given it also indicates you don't have to worry about proration, if you disposed of the traditional IRA before 12/31/23. So do you need to convert the entire trad IRA to Roth IRA (or the other two options) or can you cash out the IRA? The paragraph below seems to indicate as long as you don't have the IRA anymore by the end of the year in which the backdoor method was used, then you don't have to worry about proration: In any case, you have until December 31st of the tax year in which you make the backdoor Roth IRA conversion to dispose of the traditional IRA. If y...