Search found 149 matches

by lazynovice
Sun Oct 18, 2020 2:21 pm
Forum: Personal Investments
Topic: At what age did you start moving into bonds?
Replies: 79
Views: 4375

Re: At what age did you start moving into bonds?

Back in the early 90s, my 401(k) administrator had a little quiz to assess risk tolerance. I ended up at 80/20 throughout my 20s and 30s. Once I found Bogleheads, around 40, I ended up closer to age in bonds but as we have gotten older with no debt and college fully funded, we have been age in bonds...
by lazynovice
Tue Oct 13, 2020 9:16 pm
Forum: Personal Investments
Topic: AA and tax loss harvesting
Replies: 42
Views: 2314

Re: AA and tax loss harvesting

Under current tax law, capital gains tax rates are less than ordinary tax rates. When you withdraw from the 401(k), those will be subject to ordinary rates. I prefer the highest growth part of my portfolio to be subject to the lower capital gains rates than the ordinary rates. In the current environ...
by lazynovice
Wed Sep 30, 2020 2:30 pm
Forum: Personal Finance (Not Investing)
Topic: Penalty for too much tax withholding?
Replies: 11
Views: 1614

Re: Penalty for too much tax withholding?

If you are owed a refund and your identity is stolen via a fake return, your return will be held up. This happened to a co-worker of mine five years ago. He eventually got his money but not when he thought he would. Between that experience and government shut downs including COVID, I’d prefer to owe...
by lazynovice
Wed Sep 30, 2020 2:03 pm
Forum: Personal Finance (Not Investing)
Topic: How well did you predict your income growth?
Replies: 52
Views: 3969

Re: How well did you predict your income growth?

The only predictions we ever made was for COLA adjustments. Anything else was gravy. If we had done worse, then we would have adjusted, but we both did better than expected.
by lazynovice
Sun Sep 27, 2020 7:34 pm
Forum: Personal Investments
Topic: New investor looking for Fidelity index fund retirement portfolio feedback
Replies: 15
Views: 1158

Re: New investor looking for Fidelity index fund retirement portfolio feedback

Nothing seriously wrong with your plan. There is a lot of overlap among your fund choices. As long as you are aware of that, then it is fine.
by lazynovice
Sun Sep 27, 2020 1:06 pm
Forum: Personal Finance (Not Investing)
Topic: Tax Loss Harvesting Example - Please Help
Replies: 8
Views: 609

Re: Tax Loss Harvesting Example - Please Help

No, you do not need to wait for it to drop below the lowest price you have ever paid. I think that is what you are asking. You can TLH the $300 shares when the market drops to 299.99 if you want to. You just need to sell any other shares purchased within the wash sale window.
by lazynovice
Thu Sep 24, 2020 9:58 pm
Forum: Investing - Theory, News & General
Topic: Total Stock Market Index vs. ETF pricing [Vanguard mutual fund vs. ETF]
Replies: 10
Views: 562

Re: Why is 9/24 percent changes different for VTSAX and VTI?

Do these two funds always have the same return? If so, why have them. Thanks. One is an ETF and one is a mutual fund but they are different share classes of the same fund. In theory, they should have the same return but ETFs trade at premiums/discounts while mutual funds trade at NAV so the return ...
by lazynovice
Thu Sep 24, 2020 9:54 pm
Forum: Personal Finance (Not Investing)
Topic: pay down mortgage selling VBTLX
Replies: 7
Views: 734

Re: pay down mortgage selling VBTLX

What taxes will you owe on the sake of the VBTLX?
by lazynovice
Thu Sep 24, 2020 5:46 pm
Forum: Personal Finance (Not Investing)
Topic: What sectors are hiring?
Replies: 15
Views: 1592

Re: What sectors are hiring?

With schools being online, a lot of parents are hiring people to oversee their children’s schooling. Similar to being a nanny- making sure kids can log in, do assignments and getting them lunch and snacks.
by lazynovice
Mon Sep 21, 2020 9:17 pm
Forum: Personal Finance (Not Investing)
Topic: Roth IRA strategy - new MAGI
Replies: 10
Views: 1050

Re: Roth IRA strategy - new MAGI

There are options I am sure you are aware of: roll the IRAs into a new employer’s 401(k), set up a company for a side gig and create a solo 401(k)... but not worth the trouble if you are under the Roth limits.
by lazynovice
Sun Sep 20, 2020 6:38 pm
Forum: Personal Finance (Not Investing)
Topic: Roth IRA strategy - new MAGI
Replies: 10
Views: 1050

Re: Roth IRA strategy - new MAGI

Looking at your post here: https://www.bogleheads.org/forum/viewtopic.php?f=1&t=324853&p=5480123#p5480123 You both have traditional IRAs, so back door is not a good option. If you did not have those, they would have been. The concept of the backdoor is that you convert virtually immediately and have...
by lazynovice
Sun Sep 20, 2020 6:00 pm
Forum: Investing - Theory, News & General
Topic: Is anyone waiting until after the election?
Replies: 309
Views: 20248

Re: Is anyone waiting until after the election?

Looking at September 20, 2016, S&P 500 closed at 2,139.76. The day after the election, November 9, 2016, it opened at 2,131.56. That’s a negligible difference to me but you’d pick up a bit waiting. 2012 September 20, 2012 close 1,420.26 November 7, 2012 opening 1,428.27 Waiting would have been a bad...
by lazynovice
Sun Sep 20, 2020 4:39 pm
Forum: Personal Investments
Topic: 401k LifePlan or just straight S&P 500
Replies: 3
Views: 263

Re: 401k LifePlan or just straight S&P 500

Most likely the 2055 life plan is 80-ish percent equity anyway. The question is how you will react with a big market drop. Selling at the bottom and buying back in with a tax deferred account is a disaster. For people likely to do that, the target date fund is better. If you are not one of those pe...
by lazynovice
Sun Sep 20, 2020 4:35 pm
Forum: Investing - Theory, News & General
Topic: Is anyone waiting until after the election?
Replies: 309
Views: 20248

Re: Is anyone waiting until after the election?

I am certainly not selling right now and still doing my regular investing which is higher due to COVID deferred travel etc. If I had a large (for me) amount to invest and I was nervous, I’d consider waiting even though it is frowned upon here. In times where I believed there was an imminent drop and...
by lazynovice
Sun Sep 20, 2020 4:12 pm
Forum: Personal Investments
Topic: 401k LifePlan or just straight S&P 500
Replies: 3
Views: 263

Re: 401k LifePlan or just straight S&P 500

Most likely the 2055 life plan is 80-ish percent equity anyway. The question is how you will react with a big market drop. Selling at the bottom and buying back in with a tax deferred account is a disaster. For people likely to do that, the target date fund is better. If you are not one of those peo...
by lazynovice
Sun Sep 20, 2020 1:11 pm
Forum: Personal Investments
Topic: Best Vehicle for Home Savings
Replies: 30
Views: 2159

Re: Best Vehicle for Home Savings

Hahaha. Gotta love Klangfool responses. When I was younger, I saved in a high yield savings account, 401k loan, Roth IRA. In that order. We bought a low enough cost home that the HYSA was enough for 20% down without having to touch retirement accounts. Now, that I am older, I don't save for anythin...
by lazynovice
Sun Sep 20, 2020 1:02 pm
Forum: Personal Investments
Topic: Best Vehicle for Home Savings
Replies: 30
Views: 2159

Re: Best Vehicle for Home Savings

Hahaha. Gotta love Klangfool responses. When I was younger, I saved in a high yield savings account, 401k loan, Roth IRA. In that order. We bought a low enough cost home that the HYSA was enough for 20% down without having to touch retirement accounts. Now, that I am older, I don't save for anythin...
by lazynovice
Sun Sep 20, 2020 12:49 pm
Forum: Personal Investments
Topic: Best Vehicle for Home Savings
Replies: 30
Views: 2159

Re: Best Vehicle for Home Savings

Five to ten years is a long time. Roth IRA and a taxable brokerage account. I’d put it into equities in the beginning and shift to bonds/cash as the purchase date gets closer.
by lazynovice
Sun Sep 20, 2020 12:43 pm
Forum: Personal Investments
Topic: Help w/simple taxable account investment choices
Replies: 4
Views: 347

Re: Help w/simple taxable account investment choices

I’d be careful with the Fidelity “zero” funds in taxable. They cannot be moved to another brokerage firm without selling them and assuming they are held for a while, they’ll have taxable gains. That is a general rule and if her tax bracket stays low won’t apply because she will be in the 0% capital ...
by lazynovice
Sun Sep 20, 2020 12:30 pm
Forum: Personal Investments
Topic: Lump sum mortgage payoff at 3.75% vs. invest
Replies: 15
Views: 1052

Re: Lump sum mortgage payoff at 3.75% vs. invest

We did think of doing lower rate, but instead by paying off mortgage, simplified our emergency fund by a lot, as mortgage was the biggest of our expenses. So by paying off mortgage, same fund that was for a year is now 2 years or more instead, and we will use some of that money to invest if/when it...
by lazynovice
Thu Sep 17, 2020 12:59 pm
Forum: Personal Finance (Not Investing)
Topic: Are permanently disallowed wash sales in IRA instant?
Replies: 2
Views: 281

Re: Are permanently disallowed wash sales in IRA instant?

If all trades occur in the IRA and no trades of substantially identical securities occur in a taxable account, then the term wash sale is not applicable. You are not deducting tax losses within an IRA. When one of the trades occurs in a taxable account and it is at a loss, then you start to apply th...
by lazynovice
Wed Sep 16, 2020 11:44 pm
Forum: Personal Finance (Not Investing)
Topic: Discretionary spending strategy
Replies: 21
Views: 1870

Re: Discretionary spending strategy

Our budget has three categories+ taxes, spending and investing. We started viewing it that way once we had retirement accounts maxed out, college saved for, and no mortgage. We give ourselves a raise every year for spending, although a few years, I have skipped that. This year I cut it back when I c...
by lazynovice
Sun Sep 13, 2020 9:27 am
Forum: Personal Investments
Topic: Backdoor Roth IRA Conversion: Yearly Execution Strategy in Practice
Replies: 18
Views: 761

Re: Backdoor Roth IRA Conversion: Yearly Execution Strategy in Practice

Here are the strategies (ideas) I’ve thought about: Idea #1 Automatically transfer $1K/month to the taxable account. Add monthly $1K payments to VTIAX index fund (Eventually, our taxable account will be 100% VTIAX – VTSAX and VBTLX are in our 401(k) and Roth accounts). Set account to automatically ...
by lazynovice
Sat Sep 12, 2020 7:18 pm
Forum: Personal Finance (Not Investing)
Topic: is it time to pay off my 2.375% mortgage?
Replies: 39
Views: 3646

Re: is it time to pay off my 2.375% mortgage?

Have you run the net price calculator for the schools he is interested in? I think the 529 is going to create a problem for non-merit aid in the first year. They’ll expect you to spend a big part of that money. Paid off houses and retirement funds are more protected in the financial aid world than 5...
by lazynovice
Sat Sep 12, 2020 7:04 pm
Forum: Personal Finance (Not Investing)
Topic: Need advice using monthly free cash flow
Replies: 3
Views: 358

Re: Need advice using monthly free cash flow

That will be $6,000 per year for you and $6,000 for your wife. Still leaves you with a bunch to work with.
by lazynovice
Sat Sep 12, 2020 7:02 pm
Forum: Personal Finance (Not Investing)
Topic: Financial advisor
Replies: 45
Views: 4930

Re: Would you fire your financial advisor for this error?

If your mother had to ask if she had enough money for something, she needs an advisor. Most people are NOT like the people on this forum. They are not going to spend their free time managing their money. We can all debate whether it is wise. Many of my relatives can’t believe I pay someone to repair...
by lazynovice
Sat Sep 12, 2020 3:03 pm
Forum: Personal Finance (Not Investing)
Topic: Need advice using monthly free cash flow
Replies: 3
Views: 358

Re: Need advice using monthly free cash flow

Number 1 has a known return. I don’t know enough about rental income taxation to know what the tax impact of a paid off property is versus one with interest expense. Your EF with two mortgages needs to be high enough to compensate for repairs or months where you have no rental income. Number 2- I se...
by lazynovice
Sat Sep 12, 2020 2:40 pm
Forum: Personal Investments
Topic: Withdrawing $100k from 401k, then payback to Vanguard IRA
Replies: 6
Views: 883

Re: Withdrawing $100k from 401k, then payback to Vanguard IRA

That is the only downside I see. Doesn’t affect you. The other is that for the time it takes your trustee to send your check, you are out of the market. If they offer an option to fedex the check, I’d pay for it.
by lazynovice
Tue Sep 08, 2020 2:21 pm
Forum: Personal Investments
Topic: Best way to build an emergency fund?
Replies: 95
Views: 6509

Re: Best way to build an emergency fund?

What are the unrealized gains on the taxable account? You have an emergency fund: 4,000 primary savings 2,500 EF 5,200 gift fund 30,000 taxable account ———————————- 41,000 The issue is the biggest part is in stocks which you may want to sell and move to something safer if the tax hit is not too larg...
by lazynovice
Tue Sep 08, 2020 1:55 pm
Forum: Personal Investments
Topic: Personal finance
Replies: 23
Views: 2559

Re: Personal finance

A couple of people have said this already but I am going to ask another way. What are the tax consequences of taking the 529 money and putting part of it into a Roth? Do you have significant gains that would be subject to the tax and penalty? Or did you get a state tax deduction for the contribution...
by lazynovice
Tue Sep 08, 2020 1:32 pm
Forum: Personal Investments
Topic: Can't contact prior employer to rollover 401k
Replies: 21
Views: 2145

Re: Can't contact prior employer to rollover 401k

If you feel you have exhausted all options, page 15 of this document has a number at the Department of Labor where you can get assistance.

https://www.dol.gov/sites/dolgov/files/ ... liance.pdf
by lazynovice
Mon Sep 07, 2020 8:51 pm
Forum: Personal Investments
Topic: Withdrawing $100k from 401k, then payback to Vanguard IRA
Replies: 6
Views: 883

Re: Withdrawing $100k from 401k, then payback to Vanguard IRA

Having an IRA hurts your ability to do a backdoor Roth, if you do those.
by lazynovice
Mon Sep 07, 2020 7:49 pm
Forum: Personal Investments
Topic: Newer investor, lost access to 457b, now what?
Replies: 5
Views: 409

Re: Newer investor, lost access to 457b, now what?

Pay down your mortgage? Or invest in 529s for college? Do you have access to an HSA? If you donate to charity/church regularly, look at a donor advised fund?

Nothing wrong with index funds in taxable.
by lazynovice
Mon Sep 07, 2020 7:27 pm
Forum: Personal Finance (Not Investing)
Topic: Emergency Fund vs. Debt Paydown
Replies: 21
Views: 1377

Re: Emergency Fund vs. Debt Paydown

I’ve already weighed in so recognize this is a second vote. But trying to answer the 3-5 steps... Read the wiki here and make a plan. Having a plan you developed on your own is a big step. When you understand why you are doing something, it helps to stick with it. I would keep the 6k EF, if it were ...
by lazynovice
Mon Sep 07, 2020 10:52 am
Forum: Personal Finance (Not Investing)
Topic: Emergency Fund vs. Debt Paydown
Replies: 21
Views: 1377

Re: Emergency Fund vs. Debt Paydown

Are you able to do a balance transfer of the personal loan to a credit card that offers 0% on transfers?
by lazynovice
Mon Sep 07, 2020 10:50 am
Forum: Personal Finance (Not Investing)
Topic: Emergency Fund vs. Debt Paydown
Replies: 21
Views: 1377

Re: Emergency Fund vs. Debt Paydown

How many months’ expenses would $1k represent?

I’d recommend keeping the EF at the $6k assuming it is about 3 months of expenses and paying down the credit card debt with earnings next. I am also assuming the personal debt is higher rate debt than the student loan.
by lazynovice
Tue Sep 01, 2020 8:44 am
Forum: Investing - Theory, News & General
Topic: 401k vesting? How does this work?
Replies: 7
Views: 576

Re: 401k vesting? How does this work?

The dollars that the company keeps can be used two ways that I know of- the company can withdraw them or they can keep them in the plan to use for future matches or to cover plan expenses. Either way, the company is saving money. Some companies allow you to recapture that match if you become re-empl...
by lazynovice
Sun Aug 30, 2020 3:15 pm
Forum: Personal Finance (Not Investing)
Topic: Employers - Will you comply with EO request to defer payroll tax?
Replies: 54
Views: 6698

Re: Employers - Will you comply with EE request to defer payroll tax?

...And the part where no matter how many times you explain it to them, many employees will not understand that it is a deferral and will be outraged when their checks are reduced in January just as Christmas credit card bills and Spring college tuition comes due. Massive education effort for employe...
by lazynovice
Sat Aug 29, 2020 5:14 pm
Forum: Personal Finance (Not Investing)
Topic: Someone filed unemployment claims in my wife's name! (CA)
Replies: 12
Views: 1616

Re: Someone filed unemployment claims in my wife's name! (CA)

This has been rampant since the Pandemic Unemployment Insurance has been in effect. Make sure you are telling the HR department at your wife's employer. All big companies have been dealing with this over the last 4 months or so. Notifying the state is the best thing to do. They too have been dealing...
by lazynovice
Sat Aug 29, 2020 12:15 pm
Forum: Investing - Theory, News & General
Topic: To International Index Fund or Not
Replies: 19
Views: 1562

Re: To International Index Fund or Not

The top 10 holdings in VTIAX are:

Alibaba
Tencent
Taiwan Semiconductor
Nestle
Roche
Samsung
SAP
Novartis
Toyota
AstraZeneca

They are not in the S&P. If you don’t want to own any of those companies, then 100 percent in a S&P 500 fund is the right choice for you. I prefer to own them.
by lazynovice
Sat Aug 29, 2020 11:46 am
Forum: Personal Investments
Topic: What to do with $150K Bonus?
Replies: 31
Views: 3540

Re: What to do with $150K Bonus?

I would pay off the mortgage, fund a back door Roth for you, and top off the college fund for child number 2. Then put the remainder into an account for remodel/down payment for when you make that decision along with the mortgage payment you’ll now “pay yourself”
by lazynovice
Sat Aug 29, 2020 10:26 am
Forum: Personal Investments
Topic: Balancing Tax Efficiency with 401k and Taxable Funds
Replies: 6
Views: 445

Re: Balancing Tax Efficiency with 401k and Taxable Funds

What is your desired Asset Allocation? What is the SEP-IRA invested in? What is your tax bracket? You could keep things very simple by owning the same target date fund in all of your accounts. Target date funds in taxable are not very tax efficient but Vanguard’s are not bad. Generally I calculate m...
by lazynovice
Sat Aug 29, 2020 10:08 am
Forum: Personal Investments
Topic: Fidelity Taxable Question: Vanguard ETF VS Fidelity Index Fund
Replies: 30
Views: 2376

Re: Fidelity Taxable Question: Vanguard ETF VS Fidelity Index Fund

Okay, so then short term capital gains distributions (if any) are treated as unqualified dividends. The capital gains distribution even though all treated as long term still generate enough of a tax drag at the 22% tax bracket to more than nullify the cost savings on ER between the Fidelity mutual ...
by lazynovice
Sat Aug 29, 2020 9:28 am
Forum: Personal Investments
Topic: Convincing teenager to invest in Roth
Replies: 109
Views: 5902

Re: Convincing teenager to invest in Roth

At 17, what is his tax rate? Probably zero? Capital gains rate is probably zero too? Until he has to pay taxes on the brokerage earnings and capital gains, he will not see the benefit of the Roth. If he puts the money in an S&P 500 fund and does not sell, he is going to have very little taxable inco...
by lazynovice
Mon Aug 17, 2020 9:26 pm
Forum: Personal Investments
Topic: Fidelity Taxable Question: Vanguard ETF VS Fidelity Index Fund
Replies: 30
Views: 2376

Re: Fidelity Taxable Question: Vanguard ETF VS Fidelity Index Fund

FSKAX expense ratio .015% VTI expense ratio .03% All of this math is back of the envelope so you’ll need to do the real math on your own. FSKAX last twelve months of dividends $1.614 Per share; last twelve months of capital gains $0 per share (this has not always been the case) VTI last twelve month...
by lazynovice
Sun Aug 16, 2020 8:19 pm
Forum: Personal Investments
Topic: Converting VTSAX to VTI
Replies: 9
Views: 862

Re: Converting VTSAX to VTI

I was not smart and moved the shares out of Vanguard to Fidelity. Fidelity is unable to convert them for me, so now, I will move them back, convert and move them back to Fidelity. Something to do with my free time, I guess. :oops:
by lazynovice
Sun Aug 16, 2020 6:35 pm
Forum: Personal Investments
Topic: Converting VTSAX to VTI
Replies: 9
Views: 862

Re: Converting VTSAX to VTI

I've done the same conversation for moving to Merrill edge. 1) purchase dates remain the same. 2) converted etf doesn't have fractional shares -- they are sold as part of conversation process. The fractional shares are sold as part of the conversion process or the transfer process? Either one will ...
by lazynovice
Sun Aug 16, 2020 6:09 pm
Forum: Personal Investments
Topic: Converting VTSAX to VTI
Replies: 9
Views: 862

Converting VTSAX to VTI

I have VTSAX shares that I would like to convert to VTI. I own both and want to consolidate to VTI. I use specific id and I only have covered shares. By way of example this is one of my lots: Purchase Date # of Shares Cost Basis 9/30/2013 119.017 5,073.695 I understand from previous posts that the c...