Search found 552 matches

by jdilla1107
Sun Nov 12, 2017 12:51 pm
Forum: Personal Finance (Not Investing)
Topic: Donor Advised funds
Replies: 44
Views: 1650

Re: Donor Advised funds

"Tax deferred space" refers to the maximum contribution limits related to traditional IRAs and workplace retirement plans - NOT at all what you are talking about. That's why everyone is either confused or disagreeing with you. I think this forum commonly accepts that EE boonds and I Bonds expand ta...
by jdilla1107
Sat Nov 11, 2017 9:35 pm
Forum: Personal Finance (Not Investing)
Topic: Donor Advised funds
Replies: 44
Views: 1650

Re: Donor Advised funds

You've got it backwards. It doesn't expand your tax deferred space, but the charity's. It's not your tax deferred space, but the charity's. For exactly that reason, not to mention the costs, you proposal is inferior. Either the money sits in my taxable account or the DAF. If the money sits in my ta...
by jdilla1107
Sat Nov 11, 2017 9:05 pm
Forum: Personal Finance (Not Investing)
Topic: Donor Advised funds
Replies: 44
Views: 1650

Re: Donor Advised funds

You've got it backwards. It doesn't expand your tax deferred space, but the charity's. It's not your tax deferred space, but the charity's. For exactly that reason, not to mention the costs, you proposal is inferior. Right. Absent administrative or other reasons such as those DM200 elaborated on, b...
by jdilla1107
Sat Nov 11, 2017 9:01 pm
Forum: Personal Finance (Not Investing)
Topic: Donor Advised funds
Replies: 44
Views: 1650

Re: Donor Advised funds

You've got it backwards. It doesn't expand your tax deferred space, but the charity's. It's not your tax deferred space, but the charity's. For exactly that reason, not to mention the costs, you proposal is inferior. Either the money sits in my taxable account or the DAF. If the money sits in my ta...
by jdilla1107
Sat Nov 11, 2017 1:03 pm
Forum: Personal Finance (Not Investing)
Topic: Donor Advised funds
Replies: 44
Views: 1650

Donor Advised funds

Let's say I am faced with the choice between: 1) Donating $X per year over 10 years to charity 2) Donating $10X all in one year to a donor advised fund and dispersing $X to charity annually I didn't think of it this way before, but #2 seems better for the following reasons: - It expands my limited t...
by jdilla1107
Fri Nov 03, 2017 4:21 pm
Forum: Personal Finance (Not Investing)
Topic: Value of charitable donations on taxes
Replies: 3
Views: 415

Value of charitable donations on taxes

Based of the news of potential tax changes that may or may not come to pass, I have been considering accelerating charitable giving in 2017. My thinking is like this: - It's seems very unlikely that my deduction would be worth MORE in the future than it is this year. -There is a chance my deduction ...
by jdilla1107
Tue Oct 17, 2017 8:34 pm
Forum: Personal Consumer Issues
Topic: any good credit card sign up bonuses?
Replies: 15
Views: 1340

Re: any good credit card sign up bonuses?

I just did Barclay arrival plus. Bonus of $400 in travel reimbursement, no annual fee for first year.

Next up for me is likely capital one venture rewards. Looks like 50,000 mile bonus.

I also always do 2x bonuses because i do one card for me and a separate account for my spouse.
by jdilla1107
Tue Oct 17, 2017 7:58 pm
Forum: Investing - Theory, News & General
Topic: Alternatives to selling TSM from a taxable account
Replies: 5
Views: 693

Re: Alternatives to selling TSM from a taxable account

Direct all new funds plus all stock dividends to bonds. Around 2% of your stock portfolio can naturally shift to bonds per year through dividends alone.
by jdilla1107
Wed Aug 30, 2017 8:28 pm
Forum: Personal Finance (Not Investing)
Topic: Estate Tax and Trusts
Replies: 4
Views: 408

Re: Estate Tax and Trusts

My own situation is that I am well under the estate tax exemption today, but am optimistic about my future. I sometimes wonder if I should transfer assets to a trust to let them grow in the trust. The downside is annual tax complexity I would rather avoid. However, I think this is the secret to gett...
by jdilla1107
Wed Aug 30, 2017 7:42 pm
Forum: Personal Finance (Not Investing)
Topic: Estate Tax and Trusts
Replies: 4
Views: 408

Estate Tax and Trusts

I am trying to understand the basics of trusts and the estate tax. Say a single person is on their death bed with a $10m portfolio all in a taxable account. Can they create a trust immediately, transfer all assets to the trust, leave the trust to heirs, and avoid the estate tax completely? (I picked...
by jdilla1107
Fri Aug 25, 2017 9:35 am
Forum: Investing - Theory, News & General
Topic: Passive investing is a Ponzi scheme
Replies: 77
Views: 6059

Re: Active investing is a Ponzi scheme

The problem with making this play is you are taking on tremendous market risk by holding Facebook. Most of the share price is the cost of playing the ponzi scheme not the intrinsic value of the stock. This is precisely the point. Risk is a component of price, right? To get more return you have to t...
by jdilla1107
Fri Aug 25, 2017 8:37 am
Forum: Investing - Theory, News & General
Topic: Passive investing is a Ponzi scheme
Replies: 77
Views: 6059

Re: Active investing is a Ponzi scheme

In the interview she did mention specific examples of where she felt the risk in indexing were particularly acute with the FANG stocks vs. stocks like Microsoft where you get the same growth at more reasonable valuations. Why doesn't she invest in FANG stocks, stay away from Microsoft, and enjoy he...
by jdilla1107
Sat Aug 19, 2017 1:02 pm
Forum: Investing - Theory, News & General
Topic: IBonds: My worst bond investment over the last 5 years
Replies: 74
Views: 8014

Re: IBonds: My worst bond investment over the last 5 years

Also, OP is not comparing apples to apples. OP is comparing liquid I Bonds to bond funds with 6 year duration. Duration says nothing about liquidity. 10 yr treasuries are some of the most liquid investments in the world. Perhaps you mean different risk profiles. On the other hand...instead of compa...
by jdilla1107
Sat Aug 19, 2017 12:01 pm
Forum: Investing - Theory, News & General
Topic: IBonds: My worst bond investment over the last 5 years
Replies: 74
Views: 8014

Re: IBonds: My worst bond investment over the last 5 years

whodidntante wrote:
Sat Aug 19, 2017 11:10 am
You're comparing a lot of different kind of fruits there over a short time period. Don't confuse outcomes with strategy. In poker we call this "playing results."
My point was that few would have predicted this 5 years ago, including myself. That's all.
by jdilla1107
Sat Aug 19, 2017 11:57 am
Forum: Investing - Theory, News & General
Topic: IBonds: My worst bond investment over the last 5 years
Replies: 74
Views: 8014

Re: IBonds: My worst bond investment over the last 5 years

Five years ago, inflation was a big concern on this forum and a good number of people thought that low yields had no where to go but up. I bought a 5 year CD at that time and wrote a note to myself to check-in on results when that CD expired. (It recently did) I bought that CD with a 60 day cancel ...
by jdilla1107
Sat Aug 19, 2017 9:47 am
Forum: Investing - Theory, News & General
Topic: IBonds: My worst bond investment over the last 5 years
Replies: 74
Views: 8014

Re: IBonds: My worst bond investment over the last 5 years

From the TD website: May 1, 2017 0.98% November 1, 2016 1.38% May 1, 2016 0.08% November 1, 2015 0.77% May 1, 2015 -0.80% November 1, 2014 0.74% May 1, 2014 0.92% November 1, 2013 0.59% May 1, 2013 0.59% November 1, 2012 0.88% Assuming a 0% on the fixed part: I did (.98+1.38)/2 + (.08+.77)/2 + (0+.7...
by jdilla1107
Sat Aug 19, 2017 9:08 am
Forum: Investing - Theory, News & General
Topic: IBonds: My worst bond investment over the last 5 years
Replies: 74
Views: 8014

IBonds: My worst bond investment over the last 5 years

Five years ago, inflation was a big concern on this forum and a good number of people thought that low yields had no where to go but up. I bought a 5 year CD at that time and wrote a note to myself to check-in on results when that CD expired. (It recently did) I bought that CD with a 60 day cancel f...
by jdilla1107
Mon Aug 07, 2017 8:45 pm
Forum: Investing - Theory, News & General
Topic: Final word: Bonds in Tax-Deferred or Taxable?
Replies: 10
Views: 1180

Re: Final word: Bonds in Tax-Deferred or Taxable?

My strategy is to minimize taxes for the current year and not a future year. Stock dividends are taxed at a lower rate than bond yield and stocks also yield less for the bonds I buy. This means bonds in tax deferred stocks in taxable. In the future, I will worry about minimizing taxes for a future y...
by jdilla1107
Fri Jul 28, 2017 12:31 pm
Forum: Personal Finance (Not Investing)
Topic: Illinois Partial Year tax increase
Replies: 19
Views: 3056

Re: Illinois Partial Year tax increase

I just got this from a CPA:

"The Department of Revenue will provide two elective options: apply a blended daily rate to all income, or identify when various components of income are earned and apply the rate in effect at those different times. "
by jdilla1107
Fri Jul 07, 2017 6:23 am
Forum: Personal Finance (Not Investing)
Topic: Illinois Partial Year tax increase
Replies: 19
Views: 3056

Illinois Partial Year tax increase

Illinois just passed a tax increase from 3.75% to 4.95% retroactive to July 1st. How does a partial year tax increase even work? What if a capital gain occurred on April 1st? (I had a large one in April) Will it just be a blended rate of (3.75+4.95)/2 since it conveniently is 6 months into 2017? I g...
by jdilla1107
Tue Jun 27, 2017 9:58 pm
Forum: Investing - Theory, News & General
Topic: Taxes on I Series Bonds negate purchasing power protection?
Replies: 12
Views: 1856

Re: Taxes on I Series Bonds negate purchasing power protection?

Taxes on savings bonds are tax deferred, so you could always cash them in a year when you have no other income.

Tax deferral also lowers the real amount you have to pay in taxes. It's inflation working in your favor. $10 in taxes this year is a lot more than $10 in taxes paid in 20 years.
by jdilla1107
Tue Jun 27, 2017 8:54 am
Forum: Investing - Theory, News & General
Topic: Yes, This Is Market Timing: If the CAPE Goes Above 30, Bring on the Larry
Replies: 142
Views: 11165

Re: Yes, This Is Market Timing: If the CAPE Goes Above 30, Bring on the Larry

It's easy to see what is going on with the CAPE by looking at two graphs: Here is the current PE of the sp500: http://www.multpl.com/ Here is the PE10 (cape) http://www.multpl.com/shiller-pe/ The big reason the cape is high is because of the huge PE spike in 2008-2009. Once we get through that perio...
by jdilla1107
Tue Jun 20, 2017 9:26 pm
Forum: Investing - Theory, News & General
Topic: Where to put "leftover" money in an ETF portfolio
Replies: 13
Views: 1601

Re: Where to put "leftover" money in an ETF portfolio

The etfs will pay dividends. Wait for the dividend payments to reinvest a larger amount.
by jdilla1107
Thu May 11, 2017 9:10 pm
Forum: Personal Finance (Not Investing)
Topic: Wells Fargo selling HSA division
Replies: 23
Views: 4436

Re: Wells Fargo selling HSA division

On a related note, anyone else notice the significant under-performance of the WFIOX compared to say the VFINX? smh You aren't comparing performance with distributions included. WFIOX is less tax efficient by throwing off more gains each year which makes a price chart look worse. However, tax effic...
by jdilla1107
Sat Apr 29, 2017 4:12 pm
Forum: Personal Finance (Not Investing)
Topic: Forced to use carryover losses
Replies: 12
Views: 1361

Re: Forced to use carryover losses

I casually called them options, but they are technically restricted stock units. The tax treatment of Restricted Stock Units is not much different than nonqualified options. When Restricted Stock Units become "vested" (meaning you actually own them), the shares of stock are then issued to the emplo...
by jdilla1107
Sat Apr 29, 2017 1:05 pm
Forum: Investing - Theory, News & General
Topic: I don't understand the case for EE bonds
Replies: 321
Views: 22571

Re: I don't understand the case for EE bonds

letsgobobby, why is it irrelevant? The OP asked why invest in EE Bonds when stocks are likely to return more than 3.5% over a 20-year period. So it seems that a discussion of the likelihood of stocks doing that is relevant. Kevin There are two questions buried in this one question: 1) Why should I ...
by jdilla1107
Sat Apr 29, 2017 12:33 pm
Forum: Personal Finance (Not Investing)
Topic: Forced to use carryover losses
Replies: 12
Views: 1361

Re: Forced to use carryover losses

I casually called them options, but they are technically restricted stock units.
by jdilla1107
Sat Apr 29, 2017 8:50 am
Forum: Investing - Theory, News & General
Topic: I don't understand the case for EE bonds
Replies: 321
Views: 22571

Re: something odd regarding EE bonds

There are no scenarios of this that don't involve doing something wrong or being able to see the future. It's like saying there are some scenarios where $10 is worth more than $20. There is a large deflationary event. Long bonds significantly increase in market value while stocks crash. You want to...
by jdilla1107
Sat Apr 29, 2017 8:40 am
Forum: Investing - Theory, News & General
Topic: I don't understand the case for EE bonds
Replies: 321
Views: 22571

Re: something odd regarding EE bonds

People on this board keep trying to compare EE bonds to stocks and other investments. They should only be compared to long term bonds. .... If Larry were here, he might say to think about each within the context of the whole portfolio, not in isolation. It's obvious to me that both positions are ri...
by jdilla1107
Sat Apr 29, 2017 8:29 am
Forum: Investing - Theory, News & General
Topic: I don't understand the case for EE bonds
Replies: 321
Views: 22571

Re: something odd regarding EE bonds

There are no scenarios of this that don't involve doing something wrong or being able to see the future. It's like saying there are some scenarios where $10 is worth more than $20. There is a large deflationary event. Long bonds significantly increase in market value while stocks crash. You want to...
by jdilla1107
Sat Apr 29, 2017 8:25 am
Forum: Personal Finance (Not Investing)
Topic: Forced to use carryover losses
Replies: 12
Views: 1361

Re: Forced to use carryover losses

People on here are always going on about how TLH-ing is so great. It looks like it's not so great. Some tax strategies are "fragile" and this needs to be recognized. How is the OP any worse off if the gains get soaked up than if he had done no TLH? Right, it is still much better than not doing TLH ...
by jdilla1107
Fri Apr 28, 2017 8:36 pm
Forum: Personal Finance (Not Investing)
Topic: Forced to use carryover losses
Replies: 12
Views: 1361

Forced to use carryover losses

I have built up losses from TLHing and use the 3k deduction against income each year. This year my company is going through a sales process and I will get a significant amount of long term capital gain from exercising options. Does the tax code force me to exhaust my carryover losses against the cap...
by jdilla1107
Fri Apr 28, 2017 8:13 pm
Forum: Investing - Theory, News & General
Topic: Five year CD paying more than 10 yr. treasury
Replies: 30
Views: 4808

Re: Five year CD paying more than 10 yr. treasury

I noticed a few minutes ago that five year CD's at Schwab are paying 2.35 percent. The ten year treasury bond is quoted at yield of 2. 30 percent. Why would a five year CD pay more than a 10 year treasury? It cant be liquidity alone ( I don't think). What if in 5 years, interest rates on new 5 year...
by jdilla1107
Fri Apr 28, 2017 7:50 pm
Forum: Investing - Theory, News & General
Topic: I don't understand the case for EE bonds
Replies: 321
Views: 22571

Re: something odd regarding EE bonds

People on this board keep trying to compare EE bonds to stocks and other investments. They should only be compared to long term bonds. They are actually like none of those things, all in very important albeit different ways. On this logic you should compare them to nothing. But the practical invest...
by jdilla1107
Fri Apr 28, 2017 10:01 am
Forum: Investing - Theory, News & General
Topic: I don't understand the case for EE bonds
Replies: 321
Views: 22571

Re: something odd regarding EE bonds

The interest rate risk is not to be underestimated and neither is inflation risk. If inflation averages at the Fed's target then the pre-tax real return of EE bonds would be about 1.5%. People on this board keep trying to compare EE bonds to stocks and other investments. They should only be compare...
by jdilla1107
Fri Apr 28, 2017 9:42 am
Forum: Investing - Theory, News & General
Topic: I don't understand the case for EE bonds
Replies: 321
Views: 22571

Re: something odd regarding EE bonds

The interest rate risk is not to be underestimated and neither is inflation risk. If inflation averages at the Fed's target then the pre-tax real return of EE bonds would be about 1.5%. People on this board keep trying to compare EE bonds to stocks and other investments. They should only be compare...
by jdilla1107
Fri Apr 28, 2017 8:33 am
Forum: Investing - Theory, News & General
Topic: I don't understand the case for EE bonds
Replies: 321
Views: 22571

Re: something odd regarding EE bonds

But it's probably not giant. You buy them with after-tax dollars and you pay taxes on the gain when you redeem them, so it's a much smaller tax break than a 401(k), For rough math, compare 2.69% (20 year treasury) vs 4.77% (3.53% times 1.35 tax rate) over 20 years. This would compare "pre-tax" rate...
by jdilla1107
Fri Apr 28, 2017 7:40 am
Forum: Investing - Theory, News & General
Topic: I don't understand the case for EE bonds
Replies: 321
Views: 22571

Re: something odd regarding EE bonds

but anyway, $10,000 for 20 years at 2.69% compounded gets you $17,000 instead of $20,000. You are forgetting tax deferral, which makes that gap significantly wider for people who are high tax bracket now and low at retirement. EE bonds expand my tax deferral space somewhat significantly. Try adding...
by jdilla1107
Fri Apr 21, 2017 7:06 pm
Forum: Investing - Theory, News & General
Topic: I don't understand the case for EE bonds
Replies: 321
Views: 22571

Re: I don't understand the case for EE bonds

They allow you to expand your tax deferred space. Only in a fashion similar to non-deductible IRA contributions. The principal is after-tax, so only the earnings are deferred, and that's pretty small in this context. You are assuming something to call it small. I own a lot of EE bonds and am in a h...
by jdilla1107
Fri Apr 21, 2017 6:05 pm
Forum: Investing - Theory, News & General
Topic: I don't understand the case for EE bonds
Replies: 321
Views: 22571

Re: I don't understand the case for EE bonds

You are forgetting about the tax deferral which allows one to do tax arbitrage from high income years to low income years. That will work for some people but current EE bonds only make sense if held exactly 20 years. For a lot of younger people that means cashing them at their peak earnings. They a...
by jdilla1107
Thu Apr 20, 2017 7:48 pm
Forum: Investing - Theory, News & General
Topic: I don't understand the case for EE bonds
Replies: 321
Views: 22571

Re: I don't understand the case for EE bonds

I agree, with the caveat that EEs can make sense for educational uses (tax-free for that use) in a way other bonds cannot. However, 20 year Tennessee Valley Authority zero coupon bonds yield 3.45% (and were yielding a little higher earlier), just 8 basis points less than EE bonds while being liquid...
by jdilla1107
Sun Apr 09, 2017 8:47 pm
Forum: Personal Finance (Not Investing)
Topic: Should I Pay some Estimated Taxes?
Replies: 14
Views: 1680

Re: Should I Pay some Estimated Taxes?

I suggest you look into the "safe harbor" provisions for estimated tax payments. I believe that as long as your withholding payments equal or exceed your federal taxes owed the prior year, there will be no penalty. Of course you might have a big tax bill at tax time, but there should be n...
by jdilla1107
Wed Mar 22, 2017 7:46 pm
Forum: Personal Finance (Not Investing)
Topic: Prepaying property taxes
Replies: 4
Views: 484

Re: Prepaying property taxes

avalpert wrote:Whether this is an option varies from state to state and even county to county - for you this might help: http://www.ssgltd.com/prepayment-of-real-estate-taxes


Wow, thanks!
by jdilla1107
Wed Mar 22, 2017 7:34 pm
Forum: Personal Finance (Not Investing)
Topic: Prepaying property taxes
Replies: 4
Views: 484

Prepaying property taxes

It would save me a lot of money to prepay my 2018 property taxes this year and double up my federal deduction for 2017. Based on following this forum, I have almost assumed this was fine to do. But, I stumbled across this in a past post on bogleheads: II. Deductibility of Prepaid Taxes Section 164(a...
by jdilla1107
Sat Mar 18, 2017 8:23 am
Forum: Investing - Theory, News & General
Topic: Taxable-equivalent yield calculator (Vanguard)
Replies: 1
Views: 357

Re: Taxable-equivalent yield calculator (Vanguard)

Yes, but there are lots of other factors as well. The only right way to do this is to perform what-if scenarios with tax software. I discovered that I have nearly a 50% marginal rate by doing this.
by jdilla1107
Sun Mar 05, 2017 9:25 am
Forum: Personal Finance (Not Investing)
Topic: Pay ibonds taxes on interest now or later?
Replies: 23
Views: 1936

Re: Pay ibonds interest now or later?

Call_Me_Op wrote:You cannot pay the taxes until you sell the bonds.


This is wrong. See here:

https://www.treasurydirect.gov/indiv/re ... nsider.htm

You have an option to pay taxes every year if you want.

The only reason to I can think of paying as you go would be if you'll be in a much higher tax bracket in the future.
by jdilla1107
Sat Feb 04, 2017 6:44 pm
Forum: Investing - Theory, News & General
Topic: turbotax- underpayment penalty
Replies: 10
Views: 1855

Re: turbotax- underpayment penalty

As long as you paid 90% of what you owe this year or 100% (110% if high income) of what you paid last year, there is no penalty.

And turbotax tells you if there is a penalty.
by jdilla1107
Sun Jan 15, 2017 1:48 pm
Forum: Investing - Theory, News & General
Topic: institutional herding in corporate bonds and liquidity issues-beware ETFs in this space
Replies: 59
Views: 4233

Re: institutional herding in corporate bonds and liquidity issues-beware ETFs in this space

Here's where it hurts the investor. Your example is missing that in a liquidity crunch, the next option to purchase a bond literally may not exist (for a lower quality bond) or may not exist at a price you want to pay (high premium for an AAA or treasury. So you end up paying a higher price for qua...
by jdilla1107
Sat Jan 14, 2017 4:43 pm
Forum: Investing - Theory, News & General
Topic: institutional herding in corporate bonds and liquidity issues-beware ETFs in this space
Replies: 59
Views: 4233

Re: institutional herding in corporate bonds and liquidity issues-beware ETFs in this space

I hear this over and over from smart people and I just don't understand it. Can anyone produce an example of how this would happen in a significant way? Say a fund has two investors who buy in on the same day. The fund buys two bonds for $100. Now we have a liquidity crisis and the bonds market val...
by jdilla1107
Sat Jan 14, 2017 11:08 am
Forum: Investing - Theory, News & General
Topic: institutional herding in corporate bonds and liquidity issues-beware ETFs in this space
Replies: 59
Views: 4233

Re: institutional herding in corporate bonds and liquidity issues-beware ETFs in this space

It seems that a spike in redemptions could cause mutual funds to sell their bonds during a liquidity squeeze, hurting all investors in the fund- even those who don't sell. I hear this over and over from smart people and I just don't understand it. Can anyone produce an example of how this would hap...