Search found 4247 matches

by Artsdoctor
Tue Sep 22, 2020 4:48 pm
Forum: Investing - Theory, News & General
Topic: Never Ever Rebalance Bonds into Stocks?
Replies: 33
Views: 1549

Re: Never Ever Rebalance Bonds into Stocks?

Leesbro, Good thread. This comes up a lot. Larry Swedroe used to post on this topic although it came up a little more when investors are older than you are now. You mentioned that you want to stay at 55/45 forever. So the first question I have is a little rhetorical. What are you investing for? Obvi...
by Artsdoctor
Sun Sep 20, 2020 6:20 pm
Forum: Personal Finance (Not Investing)
Topic: Fidelity as a one stop shop
Replies: 1648
Views: 235308

Re: Fidelity as a one stop shop

I have an Ally account and an FD CMA. Very little difference, really. Free international ATM with FD, (1% w Ally), free wires, that's mostly it. All the other stuff is pretty similar. The backup of Ally checking with linked HYSA is similar to CMA/Brokerage, edge to HYSA for interest these days. The...
by Artsdoctor
Sun Sep 20, 2020 9:01 am
Forum: Personal Investments
Topic: Muni Bond Funds for Taxable Account
Replies: 20
Views: 1805

Re: Muni Bond Funds for Taxable Account

Interest rates are extremely low right now and they may remain low for a long time. However, you might eventually want to take advantage of NAV declines in the future if/when rates go up. There are some peculiarities regarding tax-loss harvesting shares of tax-exempt funds/ETFs that you'll want to ...
by Artsdoctor
Sat Sep 19, 2020 5:08 pm
Forum: Personal Investments
Topic: Gifting children from a traditional IRA
Replies: 5
Views: 453

Re: Gifting children from a traditional IRA

Yes, you can indeed give your step-children money from your IRA but you'd have to pass away first. And they would owe tax when taking the money out.
by Artsdoctor
Sat Sep 19, 2020 5:04 pm
Forum: Personal Investments
Topic: Muni Bond Funds for Taxable Account
Replies: 20
Views: 1805

Re: Muni Bond Funds for Taxable Account

Interest rates are extremely low right now and they may remain low for a long time. However, you might eventually want to take advantage of NAV declines in the future if/when rates go up. There are some peculiarities regarding tax-loss harvesting shares of tax-exempt funds/ETFs that you'll want to f...
by Artsdoctor
Wed Sep 02, 2020 4:01 pm
Forum: Personal Investments
Topic: Lowering tax bracket: VWIUX -> VBTLX?
Replies: 2
Views: 207

Re: Lowering tax bracket: VWIUX -> VBTLX?

There is no debate that we're in a very low interest rate environment right now. Pledges have been made to keep interest rates low but of course there's no guarantee of anything. Even if you were not going to be in a low tax bracket, there are arguments to lighten up on the munis as state and local ...
by Artsdoctor
Sun Aug 30, 2020 5:42 pm
Forum: Personal Finance (Not Investing)
Topic: Employers - Will you comply with EO request to defer payroll tax?
Replies: 54
Views: 6651

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

We don't plan on withholding FICA for our employees and, for now, will not do so if asked. The risk is then on the employer to pay up in 2021, not the employee, if the employee is no longer employed. Until there is true guidance on what is required, it would be far easier to continue on with current...
by Artsdoctor
Sun Aug 30, 2020 9:44 am
Forum: Personal Investments
Topic: TLH with tax-exempt bond fund
Replies: 3
Views: 310

Re: TLH with tax-exempt bond fund

Our Wiki has a very good explanation on this topic. The bottom line is this: A tax-exempt bond fund can accrue dividends daily or monthly. If it accrues monthly, you are subject to some additional restrictions when it comes to tax-loss harvesting (the "6-month rule" described above). The fund you me...
by Artsdoctor
Thu Aug 27, 2020 6:51 pm
Forum: Investing - Theory, News & General
Topic: Liability Matching Portfolio and/or Asset Allocation
Replies: 52
Views: 3286

Re: Liability Matching Portfolio and/or Asset Allocation

^ Definitely good points. It's crucial to be on the same page with definitions but that doesn't happen regularly enough--and leads to confusion and misunderstandings. For me, the LMP approach fits with my worldview. Several years ago, I designed an LMP with TIPS which would take me from 65-85. I use...
by Artsdoctor
Thu Aug 27, 2020 5:54 pm
Forum: Investing - Theory, News & General
Topic: Liability Matching Portfolio and/or Asset Allocation
Replies: 52
Views: 3286

Re: Liability Matching Portfolio and/or Asset Allocation

Perhaps I'm sidelining the discussion, if so feel free to ignore me! My idea of a liability-matching portfolio (LMP) is to define/decide what liabilities are non-negotiable and match them up with relatively risk-free income (pension, annuity, SS, insurance). (Yes, there is always risk and inflation...
by Artsdoctor
Thu Aug 27, 2020 9:37 am
Forum: Investing - Theory, News & General
Topic: Liability Matching Portfolio and/or Asset Allocation
Replies: 52
Views: 3286

Re: Liability Matching Portfolio and/or Asset Allocation

Perhaps I'm sidelining the discussion, if so feel free to ignore me! My idea of a liability-matching portfolio (LMP) is to define/decide what liabilities are non-negotiable and match them up with relatively risk-free income (pension, annuity, SS, insurance). (Yes, there is always risk and inflation...
by Artsdoctor
Thu Aug 27, 2020 9:26 am
Forum: Personal Finance (Not Investing)
Topic: LT Cap gain, ST Cap loss, Roth conversion
Replies: 4
Views: 234

Re: LT Cap gain, ST Cap loss, Roth conversion

You don't have a choice when it comes to declaring short-term and long-term capital gains and losses. So for example, if you have $1M in LTCG and no long-term capital losses, you'd take the $500,000 in short-term losses against the LTCG. You'd have $500,000 in LTCG remaining and the Roth conversion ...
by Artsdoctor
Fri Aug 21, 2020 3:44 pm
Forum: Personal Consumer Issues
Topic: Vacationing safely in the era of Covid - How did you do it?
Replies: 124
Views: 9580

Re: Vacationing safely in the era of Covid - How did you do it?

We act on the vacation just like we do at home. The same rules apply. So you sleep in your own bed, just like at home? :D We are planning 1 week at a time share, a 10 hr drive from home. Will bring some food and our own pillows. While we would normally consider an overnight stop going and/or coming...
by Artsdoctor
Fri Aug 21, 2020 12:29 pm
Forum: Investing - Theory, News & General
Topic: Bond funds in taxable: How much can tax loss harvesting mitigate the risk of increases in interest rates?
Replies: 22
Views: 1277

Re: Bond funds in taxable: How much can tax loss harvesting mitigate the risk of increases in interest rates?

Neurosphere, I've done what you're describing for many years. Although I have not quantified anything nearly as detailed as you have, the idea of switching back and forth between somewhat similar bond funds has given me the "confidence" to stick with an intermediate maturity knowing that TLH can be ...
by Artsdoctor
Thu Aug 13, 2020 1:35 pm
Forum: Personal Finance (Not Investing)
Topic: Gifting Strategy
Replies: 19
Views: 1552

Re: Gifting Strategy

There are numerous articles out there explaining ways to gift. Here is one of many which is very clear: https://www.policygenius.com/taxes/guide-to-gift-tax/ You can play around with the number of gifts, the number of family members giving, and the number of family recipients. We've done this many t...
by Artsdoctor
Wed Aug 12, 2020 3:55 pm
Forum: Personal Investments
Topic: Short Term Treasury vs. Short Term Federal
Replies: 15
Views: 1208

Re: Short Term Treasury vs. Short Term Federal

Munir, During times of market volatility, treasuries are going to get a pop as investors drive up the value of the bills (notes and bond). You can easily have a bond fund yielding 0% but have a YTD return of 3% (or now) because the NAV has increased. MBS investments are generally safe but they don't...
by Artsdoctor
Sun Aug 09, 2020 2:20 pm
Forum: Personal Investments
Topic: Regular charitable giving with Fidelity DAF
Replies: 26
Views: 1299

Re: Regular charitable giving with Fidelity DAF

Yes I'm starting to think to move in that direction. Annual giving and lumping it in a way to itemize every other year. For example: 2021 gifts funded to DAF in January 2021, granted in January 2021 2022 gifts funded to DAF in December 2021, granted in January 2022 Itemize deductions in 2021 Standa...
by Artsdoctor
Sun Aug 09, 2020 9:52 am
Forum: Personal Investments
Topic: Taxation of long and short term capital gains in a high-tax state
Replies: 34
Views: 1782

Re: Taxation of long and short term capital gains in a high-tax state

The bad news is that CA taxes a capital gain at the same rate as income. The good news is that CA allows carryover losses from year to year so your tax-loss harvesting becomes extremely important. Not only are those carryover losses important for investment taxation but they will be used if/when you...
by Artsdoctor
Sun Aug 09, 2020 9:44 am
Forum: Personal Investments
Topic: VTEAX (Tax-exempt bond index fund) vs VWIUX (Intermediate-term tax exempt fund)
Replies: 12
Views: 1299

Re: VTEAX (Tax-exempt bond index fund) vs VWIUX (Intermediate-term tax exempt fund)

All valuable input, thanks guys. I still need to wrap my head around the whole duration thing. I thought if I were buying a fund, and not bonds directly, that I would be decoupled from any concerns about duration. I was honestly just looking at return % before and after tax but I'm getting the feel...
by Artsdoctor
Sat Aug 08, 2020 10:22 am
Forum: Personal Investments
Topic: Regular charitable giving with Fidelity DAF
Replies: 26
Views: 1299

Re: Regular charitable giving with Fidelity DAF

Jedi, If cash flow is not a problem and you have a lot of appreciated shares, I would consider just transferring a couple of years of anticipated donations over to your DAF now. It is extremely easy to transfer Fidelity shares to your DAF so if you need to do it monthly, there's no problem with that...
by Artsdoctor
Fri Aug 07, 2020 4:52 pm
Forum: Investing - Theory, News & General
Topic: Is Roth always better than taxable?
Replies: 32
Views: 2310

Re: Is Roth always better than taxable?

I'm trying to imagine any scenario where a taxable account will beat a Roth. It's very hard to beat a Roth. A Roth is only limited by the amount you can contribute although conversions are unlimited as long as you're willing to pay the taxes on the conversion. As others have pointed out, you lose t...
by Artsdoctor
Fri Aug 07, 2020 4:37 pm
Forum: Personal Investments
Topic: VTEAX (Tax-exempt bond index fund) vs VWIUX (Intermediate-term tax exempt fund)
Replies: 12
Views: 1299

Re: VTEAX (Tax-exempt bond index fund) vs VWIUX (Intermediate-term tax exempt fund)

I found Thau's book to be invaluable so take your time a digest it. It's reference book you can back to for years. While you're learning about munis, consider putting your money to work now since education is a process. Tax-loss harvesting is something that any taxable investor should know about (an...
by Artsdoctor
Fri Aug 07, 2020 3:18 pm
Forum: Personal Investments
Topic: VTEAX (Tax-exempt bond index fund) vs VWIUX (Intermediate-term tax exempt fund)
Replies: 12
Views: 1299

Re: VTEAX (Tax-exempt bond index fund) vs VWIUX (Intermediate-term tax exempt fund)

These funds are handled differently from a tax perspective. The tax-exempt dividends from VTEAX are declared monthly, whereas the dividends from VWIUX are declared daily. I prefer to keep things as easy as possible if/when I tax-loss harvest so to me, VWIUX is the clear winner here. You can read mor...
by Artsdoctor
Mon Jun 01, 2020 5:13 pm
Forum: Investing - Theory, News & General
Topic: Where to park cash in Fidelity?
Replies: 94
Views: 10670

Re: Where to park cash in Fidelity?

Yes, but T bills are not cash. You might THINK they are, and I did, but they are not. I tried to sell T bills as the price reached par a month or so out from maturity and couldn't find a buyer at Fidelity so I couldn't get rid of them . I raised a stink at Fidelity's bond desk and was told there wa...
by Artsdoctor
Fri May 22, 2020 8:08 pm
Forum: Investing - Theory, News & General
Topic: Where to park cash in Fidelity?
Replies: 94
Views: 10670

Re: Where to park cash in Fidelity?

I buy treasury bills at auction on auto roll. Yes, but T bills are not cash. You might THINK they are, and I did, but they are not. I tried to sell T bills as the price reached par a month or so out from maturity and couldn't find a buyer at Fidelity so I couldn't get rid of them. I raised a stink ...
by Artsdoctor
Thu May 21, 2020 5:01 pm
Forum: Personal Finance (Not Investing)
Topic: Employer cut 403b contribution to zero
Replies: 86
Views: 6293

Re: Employer cut 403b contribution to zero

I'm sorry to hear about the loss of your employer match to your 403 plan. In speaking to many of my colleagues around the country, I've noticed dramatic and swift changes in compensation to faculty and staff. The changes I've seen have included base salary cuts up to 15%, termination of employer mat...
by Artsdoctor
Sat May 02, 2020 7:01 pm
Forum: Investing - Theory, News & General
Topic: Risk of Muni Bonds
Replies: 56
Views: 5561

Re: Risk of Muni Bonds

There's also an ETF from Vanguard: Vanguard Tax-Exempt Bond ETF (VTEB). The concerns over individual municipalities defaulting is why I kept a national tax-exempt bond fund, even when living in a high tax state. Vanguard has NY and CA tax-exempt funds, but to be exempt from state tax, those funds b...
by Artsdoctor
Sat May 02, 2020 6:46 pm
Forum: Personal Investments
Topic: Playbook for harvesting gains and dividends during retirement
Replies: 7
Views: 450

Re: Playbook for harvesting gains and dividends during retirement

What is the playbook for withdrawals during retirement (bogleheads follow)? Assumptions: 65 yrs old and eligible for Medicaid / Medicare Investments both in taxable and tax deferred account Relying on regular withdrawals from taxable and tax deferred accounts + Social Security for income If you're ...
by Artsdoctor
Wed Apr 29, 2020 11:49 am
Forum: Personal Finance (Not Investing)
Topic: Podcast - Wade Pfau: The 4% Rule Is No Longer Safe
Replies: 186
Views: 13514

Re: Podcast - Wade Pfau: The 4% Rule Is No Longer Safe

I don't think Pfau ever believed the 4% rule was safe did he? He said that the Rule might have worked 90% to 95% of the time when interest rates were in the 5-6% range - that is, historical data. Now he thinks a 4% rule might work 60-70% of the time with current interest rates. He thinks that a “3%...
by Artsdoctor
Wed Apr 29, 2020 11:42 am
Forum: Personal Investments
Topic: TLH - but now have short terms gains!
Replies: 19
Views: 1244

Re: TLH - but now have short terms gains!

Why do people TLH and use the S&P and the total market? There are about ten or so total market funds that are substantially different, am I missing something? You're absolutely correct, of course. There are several alternatives and easy TLH "partners." I think that it's just the sheer size and incr...
by Artsdoctor
Tue Apr 28, 2020 5:23 pm
Forum: Personal Investments
Topic: TLH - but now have short terms gains!
Replies: 19
Views: 1244

Re: TLH - but now have short terms gains!

Thank you all. I’m fine holding either fund forever. The OCD person in me likes to have the fewest funds possible. Plus it screws up my AA Excel document - But that’s not a deal breaker and easily remedied. Perhaps I’ll consolidate if there is another downturn in the near future. DAF is another gre...
by Artsdoctor
Sat Apr 25, 2020 6:37 pm
Forum: Personal Investments
Topic: TLH - but now have short terms gains!
Replies: 19
Views: 1244

Re: TLH - but now have short terms gains!

When you TLH, try to find a fund that you really wouldn't mind holding "forever." During the 2008-2009 bear market, it was not unusual to be TLHing in between two or three funds in order to clock in the losses, and no one could anticipate when the nadir would be. I "got caught" in Vanguard's Large C...
by Artsdoctor
Sun Apr 19, 2020 3:58 pm
Forum: Personal Consumer Issues
Topic: Issues with face masks?
Replies: 92
Views: 6170

Re: Issues with face masks?

If the OP was wearing a surgical mask, her difficulty breathing would not have been caused by airflow and was probably due to anxiety. If she was wearing an N95, she may well have been uncomfortable breathing since they require some getting used to. There's a lot of misunderstandings out there. Fir...
by Artsdoctor
Sun Apr 19, 2020 9:43 am
Forum: Personal Consumer Issues
Topic: Issues with face masks?
Replies: 92
Views: 6170

Re: Issues with face masks?

If the OP was wearing a surgical mask, her difficulty breathing would not have been caused by airflow and was probably due to anxiety. If she was wearing an N95, she may well have been uncomfortable breathing since they require some getting used to. There's a lot of misunderstandings out there. Firs...
by Artsdoctor
Wed Apr 15, 2020 3:33 pm
Forum: Personal Investments
Topic: My friend says his Roth and 401k are higher than before the pandemic started
Replies: 49
Views: 5736

Re: My friend says his Roth and 401k are higher than before the pandemic started

Easy: bonds. I have tax-advantaged accounts to which I've added nothing in years and they're up about 7% or so this year. I don't have any equities in those accounts and they only contain TIPS with a smattering of nominal bonds and CDs. This has nothing to do with market timing or anything, but I pr...
by Artsdoctor
Wed Apr 15, 2020 1:20 pm
Forum: Personal Finance (Not Investing)
Topic: Capital Loss Carryover for Tax Filing Error?
Replies: 14
Views: 453

Re: Capital Loss Carryover for Tax Filing?

... but did include on 2017 Tax Return. (didn't use the 3,000 available as it wasn't needed) ... I don't understand. What does this mean? You don't get to choose which years you use the carryover. Good point. I'm under the assumption that the $3,000 loss MUST be carried over on the 1040. I never th...
by Artsdoctor
Wed Apr 15, 2020 10:57 am
Forum: Personal Investments
Topic: Too many munis?
Replies: 18
Views: 961

Re: Too many munis?

Here's an idea: In my IRA, I own the iShares Ultra Short Term Bond ETF. I thought that was safe, but it did take a short-term dive recently. So it's not as safe as I thought. I could switch that out for a VG treasury fund, or one of the Vanguard Bond Index funds, which are heavy on treasuries. Perh...
by Artsdoctor
Wed Apr 15, 2020 10:02 am
Forum: Investing - Theory, News & General
Topic: Why is the market reacting poorly to plunging retail sales and manufacturing today?
Replies: 32
Views: 2493

Re: Why is the market reacting poorly to plunging retail sales and manufacturing today?

I don't understand it - I thought it was all priced in already! Did they really not expect this kind of bad news? The "bad news" isn't yet all out there. The volatility that we've been seeing has a lot of emotional baggage associated with it and there's really no reason I can see anywhere that woul...
by Artsdoctor
Wed Apr 15, 2020 9:59 am
Forum: Personal Investments
Topic: Too many munis?
Replies: 18
Views: 961

Re: Too many munis?

Yes. I'm fortunate to have accumulated a relatively sizable amount of investable assets. This past year, the dividends from my stock funds (in taxable) combined with my freelance income resulted in a relatively high income. Plus I live in NYC, where taxes abound. So there's a discrepancy in your st...
by Artsdoctor
Sat Apr 11, 2020 11:13 am
Forum: Personal Investments
Topic: Follow Bernstein or Bogle
Replies: 99
Views: 7557

Re: Follow Bernstein or Bogle

^ If you're at all interested in setting up a TIPS ladder, our own #Cruncher and also Wade Pfau give extremely detailed and easy-to-follow instructions. However, this is an extremely expensive time to set up an LMP. Interest rates are incredibly low and the price of TIPS is just too high to do it, i...
by Artsdoctor
Thu Apr 09, 2020 5:22 pm
Forum: Personal Investments
Topic: Follow Bernstein or Bogle
Replies: 99
Views: 7557

Re: Follow Bernstein or Bogle

I’d like to go back to Bernstein for a moment. The entire premise of LMP is to match assets to liability. The liability that is being matched is basic costs of living going years into the future. No one I know believes that going forward, costs of living will be nominal. They will fluctuate based u...
by Artsdoctor
Wed Apr 08, 2020 3:25 pm
Forum: Investing - Theory, News & General
Topic: Head Fakes and Dead Cats .. your thoughts on the rally?
Replies: 386
Views: 32872

Re: Head Fakes and Dead Cats .. your thoughts on the rally?

You call it a "market rally." I call it "market volatility." I don't think that a daily gain of 5% is any more calming than a daily decline of 5%. Even in the worst of bear markets, there are days and sometimes weeks of upswings. Extraordinary volatility is a bad indicator in either direction.
by Artsdoctor
Wed Apr 08, 2020 9:17 am
Forum: Personal Finance (Not Investing)
Topic: Fidelity as a one stop shop
Replies: 1648
Views: 235308

Re: Fidelity as a one stop shop

I wouldn't worry too much about the safety of the muni MM funds, but would not keep money in them that I might want to use for rebalancing into stocks in the event of a large decline accompanied by increased liquidity stress on munis, which could potentially trigger redemption fees and/or liquidity...
by Artsdoctor
Wed Apr 08, 2020 9:08 am
Forum: Personal Investments
Topic: Follow Bernstein or Bogle
Replies: 99
Views: 7557

Re: Follow Bernstein or Bogle

I’m 64 and retired, my husband is a dentist hoping to work another 5 years but his office is closed indefinitely due to the pandemic. We have 95k in cash which is probably 4-6 months of expenses. We have no debt and own our home. We have a 500 k HELOC we can dig into for more cash if needed. We pan...
by Artsdoctor
Tue Apr 07, 2020 9:28 am
Forum: Personal Investments
Topic: TLH of 6-figure loss?
Replies: 68
Views: 5096

Re: TLH of 6-figure loss?

TLH only defers taxes, it does not prevent paying taxes ultimately when you sell in retirement... by TLH your cost basis is lowered resulting in larger cap gains when you sell. There isn't a free lunch as some here are suggesting! Actually, this is not necessarily true. If you do nothing and you ul...
by Artsdoctor
Tue Apr 07, 2020 9:12 am
Forum: Personal Finance (Not Investing)
Topic: How have Donor Advised Funds held up so far?
Replies: 26
Views: 1258

Re: How have Donor Advised Funds held up so far?

We use our donor advised fund as a way to re-balance. We made two very large contributions to our DAF on 11/26/19 and 12/16/19, which totaled 30% of our projected adjusted gross income of 2019. We used shares purchased during the 2008-2009 meltdown when tax-loss harvesting (Vanguard Large Cap stock...
by Artsdoctor
Mon Apr 06, 2020 1:55 pm
Forum: US Chapters
Topic: Bogleheads community discussion - Coronavirus
Replies: 1653
Views: 76720

Re: I have COVID-19. Some thoughts.

The OP may never know where the infection was contracted. We now appreciate that some people transmit the virus while totally asymptomatic and some people transmit the virus when pre-symptomatic (perhaps 1-3 days prior to getting symptoms). We'd like to think that there is some immunity after being ...
by Artsdoctor
Mon Apr 06, 2020 1:41 pm
Forum: Personal Finance (Not Investing)
Topic: How have Donor Advised Funds held up so far?
Replies: 26
Views: 1258

Re: How have Donor Advised Funds held up so far?

We use our donor advised fund as a way to re-balance. We made two very large contributions to our DAF on 11/26/19 and 12/16/19, which totaled 30% of our projected adjusted gross income of 2019. We used shares purchased during the 2008-2009 meltdown when tax-loss harvesting (Vanguard Large Cap stock ...
by Artsdoctor
Mon Feb 24, 2020 8:29 pm
Forum: Investing - Theory, News & General
Topic: Coronavirus and the market
Replies: 4012
Views: 309489

Re: Coronavirus and the market

This is a very sobering thread. There are 7 pages, and much of the information is just inaccurate. Unless you are an infectious disease specialist who has direct ties to a top notch public health expert, I would caution everyone to stay open-minded and question what you think you might know. It is e...
by Artsdoctor
Mon Feb 24, 2020 6:35 pm
Forum: Personal Finance (Not Investing)
Topic: Fidelity as a one stop shop
Replies: 1648
Views: 235308

Re: Fidelity as a one stop shop

So, if one has enough assets (I am not sure how much though - can someone clarify?), one does not need the CMA. Everything a CMA does can be done via a brokerage account. Is all of this correct? A brokerage account also has a debit card? Any reason to open two brokerage accounts for fraud purposes ...