Search found 3285 matches

by Artsdoctor
Mon Jun 18, 2018 8:38 am
Forum: Investing - Theory, News & General
Topic: Opinions on taxable municipal bonds?
Replies: 12
Views: 705

Re: Opinions on taxable municipal bonds?

I may be wrong, but i did not think taxable municipal bonds were general obligations of the issuer. If the bond is a general obligation of the issuing municipality it is exempt from federal income taxes and subject to the taxing authority of the issuer. Taxable bonds are generally issued to support...
by Artsdoctor
Sun Jun 17, 2018 10:42 pm
Forum: Investing - Help with Personal Investments
Topic: Making taxable account more tax efficient
Replies: 16
Views: 2161

Re: Making taxable account more tax efficient

Hap, one last thing. You might want to figure tax-equivalent yields. Your federal marginal tax rate is low enough that you might not need a municipal bond fund, or at least the limited-term term fund. The short-term bond index (VBIRX) has an SEC yield of 2.78% and has an average maturity of only 2.9...
by Artsdoctor
Sun Jun 17, 2018 10:22 pm
Forum: Investing - Help with Personal Investments
Topic: Making taxable account more tax efficient
Replies: 16
Views: 2161

Re: Making taxable account more tax efficient

^ I'm not sure what software you're using, but I think you may be misinterpreting this. Unless a municipal bond fund contains at least 50% CA bonds, the state will not allow you to deduct any of the interest. All of the interest from Vanguard's tax-exempt bond funds (that are not CA-specific) will b...
by Artsdoctor
Sun Jun 17, 2018 9:51 pm
Forum: Investing - Help with Personal Investments
Topic: Making taxable account more tax efficient
Replies: 16
Views: 2161

Re: Making taxable account more tax efficient

^ If a fund has more than 50% federal debt, you can deduct a portion from your state return (for example, Vanguard Federal Money Market return). You'd still pay federal income tax on it. In order to deduct a tax-exempt fund's dividends from your state income tax, the fund will have to have more than...
by Artsdoctor
Sun Jun 17, 2018 7:39 pm
Forum: Investing - Theory, News & General
Topic: What do you sell after the emergency fund?
Replies: 25
Views: 1407

Re: What do you sell after the emergency fund?

Klang, I was referring to equities but you can use the logic when it comes to bonds. If I'm going to spend down all of my money and not leave a legacy, then I'm not going to be rebalancing into equities well into my 80's (I'm not saying that I wouldn't necessarily sell of my equities, but I wouldn't...
by Artsdoctor
Sun Jun 17, 2018 6:41 pm
Forum: Investing - Theory, News & General
Topic: What do you sell after the emergency fund?
Replies: 25
Views: 1407

Re: What do you sell after the emergency fund?

Klang, For me, it would depend on my age. Is there a reasonable expectation that you can recoup any losses? During a brutal bear market, you're probably going to have a precipitous decline in your stock:bond ratio (unless there's also some sort of inflationary conflagration that causes your bond ho...
by Artsdoctor
Sun Jun 17, 2018 6:30 pm
Forum: Investing - Help with Personal Investments
Topic: Making taxable account more tax efficient
Replies: 16
Views: 2161

Re: Making taxable account more tax efficient

If I don't, then someone else will point out that if your taxable account is at least twice the size of your necessary EF, you could hold that in the form of stock funds as well; then if you need to draw on the EF, exchange an equal or equal(tax-adjusted) amount of bonds for stocks in a tax advanta...
by Artsdoctor
Sun Jun 17, 2018 6:18 pm
Forum: Investing - Theory, News & General
Topic: What do you sell after the emergency fund?
Replies: 25
Views: 1407

Re: What do you sell after the emergency fund?

^ During an equity market swoon, I'd hope that a reasonable investor would not have to sell equities. However, I remember during the 2008-2009 meltdown, there were posters here who were too heavily invested in equities AND were forced to sell because they had literally nowhere else to get their livi...
by Artsdoctor
Sun Jun 17, 2018 6:15 pm
Forum: Investing - Theory, News & General
Topic: Which boglehead rule do you break--and are ok with
Replies: 137
Views: 8688

Re: Which boglehead rule do you break--and are ok with

Great question and really good thread! Interesting to read some of the confessions! I have bought a lot of individual munis over the years, and I have a TIPS ladder for a "Liability Matching Portfolio." That's not in keeping with the Bogleheads tradition of keeping things simple with index funds, bu...
by Artsdoctor
Sun Jun 17, 2018 6:04 pm
Forum: Investing - Theory, News & General
Topic: Opinions on taxable municipal bonds?
Replies: 12
Views: 705

Re: Opinions on taxable municipal bonds?

Hello, Right now I can go to Fidelity and get a taxable municipal bond at a higher after-tax yield than either Treasuries or CDs with the same maturity: https://fixedincome.fidelity.com/ftgw/fi/FILanding?bar=p#tbcurrent-yields|highest-yield If I understand correctly, although municipals are not bac...
by Artsdoctor
Sun Jun 17, 2018 5:58 pm
Forum: Investing - Theory, News & General
Topic: What do you sell after the emergency fund?
Replies: 25
Views: 1407

Re: What do you sell after the emergency fund?

Klang, For me, it would depend on my age. Is there a reasonable expectation that you can recoup any losses? During a brutal bear market, you're probably going to have a precipitous decline in your stock:bond ratio (unless there's also some sort of inflationary conflagration that causes your bond hol...
by Artsdoctor
Sun Jun 17, 2018 5:48 pm
Forum: Personal Finance (Not Investing)
Topic: Using donor advised fund to diversify stock with large capital gains
Replies: 38
Views: 2155

Re: Using donor advised fund to diversify stock with large capital gains

T Consequently, I periodically transfer chunks of assets from the Vanguard DAF to the Fidelity DAF in order to make use of items 2 and 3 when I have to. It is a significant flaw in Vanguard's system which will not allow you to easily make a grant recommendation on behalf of someone, so I cannot rec...
by Artsdoctor
Thu Jun 14, 2018 10:07 pm
Forum: Personal Finance (Not Investing)
Topic: Using donor advised fund to diversify stock with large capital gains
Replies: 38
Views: 2155

Re: Using donor advised fund to diversify stock with large capital gains

Yes, dying is typically one of the most tax-efficient ways to distribute assets. LOL. Yes, unless you live in a state with a punitive estate tax and/or the fed reverses course in the future. If a person is married and lives in a community property state, they get the step up if their spouse dies. Y...
by Artsdoctor
Thu Jun 14, 2018 10:02 pm
Forum: Personal Consumer Issues
Topic: Drive from Phoenix to San Diego
Replies: 39
Views: 2093

Re: Drive from Phoenix to San Diego

Palm Springs in the summer? No. Even our most "diehard" Palm Springs advocates leave. You'll be relegated to going from place to place with misters trying to keep you cool, and you can forget about hiking (which is one of the most beautiful things about Palm Springs). I've lived in Southern Californ...
by Artsdoctor
Thu Jun 14, 2018 9:55 pm
Forum: Investing - Help with Personal Investments
Topic: Taking $1M+ Long Term Capital Gains
Replies: 68
Views: 6204

Re: Taking $1M+ Long Term Capital Gains

Viewer, When you say you're confused, it's because you don't understand tax law. Nor should you. Have you even done a rough estimate with a tax software program? Do you even know if you'll be in the AMT with this large AGI? You're worried about when the "20% capital gains" rate kicks in with a $2M g...
by Artsdoctor
Thu Jun 14, 2018 5:19 pm
Forum: Personal Finance (Not Investing)
Topic: Question for those who used 529 plans
Replies: 46
Views: 2305

Re: Question for those who used 529 plans

^ This is true. The OP's question is too general and shouldn't influence whether or not to use a 529. I started a 529 when my goddaughter was born 18 years ago and the average return was about 6.5% per year but the contributions were sporadic, it was a glide path, and I really didn't pay much attent...
by Artsdoctor
Thu Jun 14, 2018 5:09 pm
Forum: Investing - Help with Personal Investments
Topic: Taking $1M+ Long Term Capital Gains
Replies: 68
Views: 6204

Re: Taking $1M+ Long Term Capital Gains

Although I'm a big proponent of working through these things with tax software, the amount of tax you're talking about would justify going over this with your accountant before considering this. There is no such person today :happy Can there ever be such a person? I mean this looks as clear cut as ...
by Artsdoctor
Thu Jun 14, 2018 1:25 pm
Forum: Investing - Help with Personal Investments
Topic: Taking $1M+ Long Term Capital Gains
Replies: 68
Views: 6204

Re: Taking $1M+ Long Term Capital Gains

^ So I'm not an accountant, and it looks as if the MA rate on capital gains is 5.1% (but please double-check this). Consequently, you're going to pay at least 28.9% tax on that $2M gain (20% federal tax on LG CG, 3.8% NIIT, and 5.1% MA). So your tax bill will be at least $578,000. Although I'm a big...
by Artsdoctor
Thu Jun 14, 2018 1:19 pm
Forum: Personal Finance (Not Investing)
Topic: Using donor advised fund to diversify stock with large capital gains
Replies: 38
Views: 2155

Re: Using donor advised fund to diversify stock with large capital gains

Let's say that you itemize deductions every year and don't need to bunch your charitable donations. I've read that lump sum contributions to a DAF can be suboptimal to annual contributions because with annual contributions, your future donations and thus your charitable deductions would be expected...
by Artsdoctor
Thu Jun 14, 2018 10:00 am
Forum: Investing - Help with Personal Investments
Topic: Taking $1M+ Long Term Capital Gains
Replies: 68
Views: 6204

Re: Taking $1M+ Long Term Capital Gains

I have accumulated over $2M LT CG. What is the best strategy to take the gains ? I am thinking 2018 will be the last bull year and I would like to unwind soon. What is the optimum LT CG that I should take in a year keeping in mind the tax brackets? The gains are in personally managed individual sto...
by Artsdoctor
Thu Jun 14, 2018 8:47 am
Forum: Personal Finance (Not Investing)
Topic: Using donor advised fund to diversify stock with large capital gains
Replies: 38
Views: 2155

Re: Using donor advised fund to diversify stock with large capital gains

Secondly, it can easily accept not just cash but also appreciated securities. This is something I would like to hear more about. I've often thought that if I inherited a problem asset (like 50% of a parent's house), that I might see if I could just "donate" my interest to a DAF and let their lawyer...
by Artsdoctor
Thu Jun 14, 2018 8:42 am
Forum: Personal Finance (Not Investing)
Topic: Using donor advised fund to diversify stock with large capital gains
Replies: 38
Views: 2155

Re: Using donor advised fund to diversify stock with large capital gains

The responses above are uniformly positive. I would also strongly encourage you to open a DAF. You might find this article article: https://www.kitces.com/blog/rules-strategies-and-tactics-when-using-donor-advised-funds-for-charitable-giving/ I have both a Vanguard and Fidelity DAF because of how ou...
by Artsdoctor
Mon Jun 11, 2018 7:57 am
Forum: Investing - Theory, News & General
Topic: How and when do you decide to do Tax Loss Harvesting?
Replies: 47
Views: 4706

Re: How and when do you decide to do Tax Loss Harvesting?

I just realized we may have a wash sale problem if we don't cross check our retirement portfolio and funds while harvesting losses in taxable accounts. Does anyone know if TLH triggers wash sale if the TAXABLE account fund we sell at a loss is a part of our Target Fund in our retirement account and...
by Artsdoctor
Tue Jun 05, 2018 7:17 pm
Forum: Personal Finance (Not Investing)
Topic: Grandparent-Owned 529's a bad idea?
Replies: 27
Views: 2883

Re: Grandparent-Owned 529's a bad idea?

Do I need to tell my kids that I have a 529 with their kids (my grandkids) as beneficiaries? Is there any reason I can't withhold this information until my grandkids' last year of college and then let them have the money? Is there anything illegal, immoral or fattening about that approach? It seems...
by Artsdoctor
Tue Jun 05, 2018 8:22 am
Forum: Investing - Help with Personal Investments
Topic: HSA as retirement vehicle
Replies: 33
Views: 3057

Re: HSA as retirement vehicle

Would it be considered tax-smart to bequest your HSA to charity instead of to a non-spouse beneficiary? This is a powerful tax-free vehicle, and it seems that “non-spouse beneficiary” is not a desirable line of succession! I have read about the taxation of the HSA when it enters the estate... Let’s...
by Artsdoctor
Mon Jun 04, 2018 5:13 pm
Forum: Investing - Help with Personal Investments
Topic: HSA as retirement vehicle
Replies: 33
Views: 3057

Re: HSA as retirement vehicle

^ The beneficiary issue is a big one. It may not be important to you, but others may feel differently so it would be incorrect to paint the HSA as an IRA-equivalent.
by Artsdoctor
Mon Jun 04, 2018 5:11 pm
Forum: Investing - Help with Personal Investments
Topic: Advice needed: $800,000 in cash, 2-year time horizon
Replies: 25
Views: 3343

Re: Advice needed: $800,000 in cash, 2-year time horizon

If you were to buy a group of CDs or other fully taxable investments, half of the income is going to eaten up in taxes so it's very hard to recommend those. Or, if you look at it in reverse, the Vanguard NY money market fund pays a little over 1% so that would be equivalent to a 2% fully taxable mon...
by Artsdoctor
Mon Jun 04, 2018 4:43 pm
Forum: Investing - Help with Personal Investments
Topic: HSA as retirement vehicle
Replies: 33
Views: 3057

Re: HSA as retirement vehicle

I’ve Been saving my HSA and investing in VTI. It’s a bit over 40k now. My thoughts are really it’s IRA account earmarked for medical costs when I’m older. That means deductible and copays when I’m on Medicare. I believe Medicare copays are 20%, so I can imagine really needing this account when I’m ...
by Artsdoctor
Fri Jun 01, 2018 8:23 pm
Forum: Personal Finance (Not Investing)
Topic: Grandparent-Owned 529's a bad idea?
Replies: 27
Views: 2883

Re: Grandparent-Owned 529's a bad idea?

This is an article which you might find helpful: https://www.reuters.com/article/us-column-feldman-529/dont-let-that-529-college-plan-hurt-your-financial-aid-idUSBRE93S0LZ20130429 Although the Vanguard description is more recent and will give you a workaround to some degree (non-parent starts with d...
by Artsdoctor
Fri Jun 01, 2018 8:03 pm
Forum: Investing - Help with Personal Investments
Topic: [TAX] Have money invested in mutual funds, but plans changed.
Replies: 15
Views: 754

Re: [TAX] Have money invested in mutual funds, but plans changed.

Alpaca, Plans do indeed change. You'll need to define what "I may need the money in 0-2 years" means. Is this hypothetical? Do you have access to other funds? Or is this it? If you actually "need" the money within the next year or so (or sooner), and there's no other source, you're going to have to ...
by Artsdoctor
Fri Jun 01, 2018 7:49 pm
Forum: Investing - Help with Personal Investments
Topic: HSA as retirement vehicle
Replies: 33
Views: 3057

Re: HSA as retirement vehicle

Emlowe, I am in a similar situation; our co-pays and deductibles are met by February, so I can sympathize. I also live in California. I have used our HSAs as retirement vehicles for many, many years. I think I opened mine over 15 years ago. I invested the money in Vanguard funds. I have no regrets, ...
by Artsdoctor
Wed May 30, 2018 6:24 pm
Forum: Investing - Theory, News & General
Topic: Bernstein - CD + Treasuries + Munis VS Vanguard Total Bond ??
Replies: 14
Views: 2000

Re: Bernstein - CD + Treasuries + Munis VS Vanguard Total Bond ??

Sandtrap, I set up an LMP several years ago after communicating with Bill Bernstein and reading Wade Pfau. I'm aware of the shortcomings mentioned in the article above and, like everything else, there are always pros and cons. For me, an LMP makes sense but there are caveats. First, you have to unde...
by Artsdoctor
Tue May 29, 2018 8:12 am
Forum: Investing - Help with Personal Investments
Topic: CD / Treasury vs Paying off Mortgage - Rates are really close
Replies: 12
Views: 1548

Re: CD / Treasury vs Paying off Mortgage - Rates are really close

"I am married age 40 this year and the standard deduction is 24k but my interest alone on my mortgage last year was 20,274. With added medical expense which i can deduct , being self employed level, sep ira distribution,car reg and other expenses , prop tax I am way over the 24k so I am better off i...
by Artsdoctor
Sun May 27, 2018 6:12 am
Forum: Investing - Help with Personal Investments
Topic: CD / Treasury vs Paying off Mortgage - Rates are really close
Replies: 12
Views: 1548

Re: CD / Treasury vs Paying off Mortgage - Rates are really close

I don't have time to crunch the numbers for you but here are some questions. What's your age and marital status? Your marital status is important because you'll want to know if you're going to have $12,000 versus $24,000 in a standard deduction for federal taxes. Your mortgage interest may not be as...
by Artsdoctor
Fri May 25, 2018 3:05 pm
Forum: Investing - Theory, News & General
Topic: Theory: Total World Index a Sure Fire Win [VT/VTWSX]
Replies: 155
Views: 12734

Re: Theory: Total World Index a Sure Fire Win [VT/VTWSX]

Adding European or Japanese stocks to U.S. stocks you add currency risk, but probably not much if any political risk. Adding South America, China, India, and other emerging markets drastically increases the exposure to black swans caused by war, violent political changes, and government confiscatio...
by Artsdoctor
Thu May 24, 2018 7:55 pm
Forum: Investing - Theory, News & General
Topic: Theory: Total World Index a Sure Fire Win [VT/VTWSX]
Replies: 155
Views: 12734

Re: Theory: Total World Index a Sure Fire Win [VT/VTWSX]

If anyone is interested in data looking at Vanguard's take on international diversification (and percentages), starting here might be helpful:

https://personal.vanguard.com/pdf/ISGGEB.pdf
by Artsdoctor
Wed May 23, 2018 7:10 pm
Forum: Investing - Theory, News & General
Topic: Theory: Total World Index a Sure Fire Win [VT/VTWSX]
Replies: 155
Views: 12734

Re: Theory: Total World Index a Sure Fire Win [VT/VTWSX]

With equities I don't want currency hedging. I want our equities to be volatile. For a Boglehead equities are for growth.Trying to "smooth" things with currency hedging just adds an extra cost that's not worth the benefit. With bonds a Boglehead wants safety (ballast) first and yield second. Prefer...
by Artsdoctor
Wed May 23, 2018 5:08 pm
Forum: Investing - Theory, News & General
Topic: Theory: Total World Index a Sure Fire Win [VT/VTWSX]
Replies: 155
Views: 12734

Re: Theory: Total World Index a Sure Fire Win [VT/VTWSX]

Total world index is pretty close to a sure fire way to earn a fair share of global stock market returns. Whether stocks are a "win" over any particular time period you care about, however, is much less certain. However, the a priori odds of stocks doing well over your investment lifetime are, I th...
by Artsdoctor
Wed May 23, 2018 4:03 pm
Forum: Investing - Help with Personal Investments
Topic: Best buy and hold vanguard fund forever...
Replies: 28
Views: 3142

Re: Best buy and hold vanguard fund forever...

There's really no such thing as set it and forget it "forever." At some point, you're going to change. However, I believe you're describing your Roth and that's it. You don't mention anything about a taxable account and it's not clear if you're asking for advice on your tax-deferred account(s). I th...
by Artsdoctor
Tue May 22, 2018 7:39 pm
Forum: Personal Finance (Not Investing)
Topic: Quicken - Do you use it?
Replies: 50
Views: 2576

Re: Quicken - Do you use it?

I've been using Quicken for 20 years. This includes our investment portfolios as well as checking. They've had a change in leadership but I'll stay with it as long as it's reasonable to do so.
by Artsdoctor
Tue May 22, 2018 7:33 pm
Forum: Investing - Theory, News & General
Topic: Rob Arnott:index Investors Buy High, Sell Low
Replies: 51
Views: 5249

Re: Rob Arnott:index Investors Buy High, Sell Low

nisiprius wrote:
Fri May 18, 2018 10:27 am

"the icky-poo S&P 500" . . .




Do NOT tell my mother that I mismanaged her money by tax-loss harvesting into Vanguard's "icky-poo S&P 500" fund . . .
by Artsdoctor
Tue May 22, 2018 7:21 pm
Forum: Investing - Help with Personal Investments
Topic: Vanguard Municipal Money Market VMSXX 1.39%
Replies: 143
Views: 14091

Re: Vangaurd Municipal Money Market VMSXX 1.39%

Is VMSXX FDIC insured? If not, should I worry about that? Money market funds are not FDIC-insured. The likelihood of a Vanguard money market fund "breaking the buck" would have to be considered virtually zero and if it were to happen, you'd have a lot more things to worry about. I've read this here...
by Artsdoctor
Tue May 22, 2018 7:15 pm
Forum: Investing - Theory, News & General
Topic: Asset Class Forecasts
Replies: 47
Views: 2634

Re: Asset Class Forecasts

Case, Assuming we knew future EPS and dividend growth rates, how were you going to use the info to modify your portfolio and plans? My post was more about tendency of the well-known "moderate" forecasters to be way too conservative. The equity reduction is more specific to my being reasonably close...
by Artsdoctor
Sat May 19, 2018 5:13 pm
Forum: Personal Finance (Not Investing)
Topic: Assisted Living tax deduction as medical expense
Replies: 23
Views: 1928

Re: Assisted Living tax deduction as medical expense

When my mom was in AL, they (the facility) sent a notice or form at the end of the year stating what percentage of the cost was attributable to medical costs. I used that for the deduction. Now that my mom is in memory care, I don't get that form, so I've just been listing the entire amount as medi...
by Artsdoctor
Tue May 15, 2018 1:18 pm
Forum: Personal Finance (Not Investing)
Topic: Do you know your marginal tax rate?
Replies: 27
Views: 3018

Re: Do you know your marginal tax rate?

2sls, You're right to question whether people know their marginal tax rates. Most do not, although many think they do. Your income is going to make things a little more complicated, and figuring out your rate for 2018 will be tough because so much has changed (for example, you'll probably not be sub...
by Artsdoctor
Tue May 15, 2018 1:02 pm
Forum: Investing - Help with Personal Investments
Topic: CA muni bonds v US bonds in taxable account?
Replies: 38
Views: 3288

Re: CA muni bonds v US bonds in taxable account?

The thing that bothers me about munis is they don't carry the same guarantee as a treasury. What happens if a city declares bankruptcy? http://www.sacbee.com/news/politics-government/capitol-alert/article45376695.html https://www.gobankingrates.com/net-worth/bankruptcy/us-cities-bankrupt/ Treasurie...
by Artsdoctor
Tue May 15, 2018 12:57 pm
Forum: Personal Consumer Issues
Topic: Helping someone with Cancer
Replies: 21
Views: 1381

Re: Helping someone with Cancer

There are many, many things you can do. What they all have in common is action. Figure out where you can be helpful (going to chemo with her, arranging meals, shuttling the kids, etc.) and give her a plan. Although it's all very well-meaning to say, "I'm here for you and just let me know when you ne...
by Artsdoctor
Tue May 08, 2018 6:35 pm
Forum: Investing - Help with Personal Investments
Topic: Best options for cash in Schwab brokerage accounts?
Replies: 44
Views: 5732

Re: Best options for cash in Schwab brokerage accounts?

^ The Vanguard Federal Money Market fund was paying considerably less than its other money market funds. The current yield is a bit of a treat, although many of us would prefer a tax-exempt money market account as a settlement account. This is no longer possible.
by Artsdoctor
Tue May 08, 2018 5:57 pm
Forum: Investing - Help with Personal Investments
Topic: CA muni bonds v US bonds in taxable account?
Replies: 38
Views: 3288

Re: CA muni bonds v US bonds in taxable account?

The limited-term tax-exempt fund has an average maturity of 3.4 years, and the current calculated SEC yield is 2.03%. If you have a marginal federal tax rate of 25%, your tax-equivalent yield would be roughly 2.71%. You'd pay CA state tax on both. Okay, that's more in line with what my calculations...