Search found 898 matches

by fundtalker123
Tue Jun 15, 2021 1:16 pm
Forum: Investing - Theory, News & General
Topic: I'll never regret not having international funds in my portfolio
Replies: 282
Views: 27750

Re: I'll never regret not having international funds in my portfolio

I will always regret not having weighted more heavily those investments that turned out in retrospect to have outperformed,
but meanwhile I'm going to stick with about 30% of equity allocation invested in total international stock index (VXUS)
by fundtalker123
Tue Jun 08, 2021 9:52 am
Forum: Personal Finance (Not Investing)
Topic: IRS refund bigger than on return and they sent 12 ibonds
Replies: 18
Views: 3734

Re: IRS refund doesn't match return and they sent 12 ibonds

Just got my paper I Bonds and have the exact same breakdown. Agree thought it was weird to use 1 envelope for each bond (would have easily fit all in 1 envelope). Maybe they have an automated process that needs to handle them this way? Or they are concerned about them get destroyed in the mail? Idk On this TD page , they explain the largest denomination is $1,000. So they don't actually print a $5,000 I Bond. Though in theory they could give only 5 $1,000 I Bonds. The reasoning they use is in this paragraph: If you buy more than $250 of savings bonds, we will use $50 denominations to fill the first $250 and the fewest possible number of additional bonds for the remainder. For example, if you request $1,000 in paper I bonds, you will receiv...
by fundtalker123
Tue Jun 08, 2021 9:39 am
Forum: Personal Finance (Not Investing)
Topic: IRS refund bigger than on return and they sent 12 ibonds
Replies: 18
Views: 3734

Re: IRS refund bigger than on return and they sent 12 ibonds

Two things happened with my 2020 IRS refund I didn't expect: 1. I requested $5000 of the refund as ibonds. I was sort of expecting to get ONE $5000 bond. Instead I got 12 separate letters with: 4x$1000, 1x$500, 1x$200, and 6x$50. I'm glad they add up to the right total, but I'm annoyed since I was thinking I want to convert them to electronic and I'm imagining that converting 12 of them is going to take much longer to deal with than converting just one? Has anyone done it who can comment? As tomsense76 pointed out, this is just the way the IRS issues paper I-Bonds for refunds. There's probably no point speculating why they do that. Just accept that is it this way. 2. The remaining part of my refund per my filed return was supposed to be $5...
by fundtalker123
Mon Jun 07, 2021 9:27 pm
Forum: Personal Finance (Not Investing)
Topic: IRS refund bigger than on return and they sent 12 ibonds
Replies: 18
Views: 3734

IRS refund bigger than on return and they sent 12 ibonds

Two things happened with my 2020 IRS refund I didn't expect: 1. I requested $5000 of the refund as ibonds. I was sort of expecting to get ONE $5000 bond. Instead I got 12 separate letters with: 4x$1000, 1x$500, 1x$200, and 6x$50. I'm glad they add up to the right total, but I'm annoyed since I was thinking I want to convert them to electronic and I'm imagining that converting 12 of them is going to take much longer to deal with than converting just one? Has anyone done it who can comment? 2. The remaining part of my refund per my filed return was supposed to be $5,092 to be wired to my bank. Instead I got a deposit of $5,320.56. I never previously got back more than reported on my form, so I'm puzzled. I filed on 5/17 electronically with Tu...
by fundtalker123
Wed Jan 13, 2021 10:10 pm
Forum: Personal Investments
Topic: University of CA Retirement Funds
Replies: 9
Views: 1389

Re: University of CA Retirement Funds

Ask Fidelity about opening "Brokeragelink" accounts linked to your 403b, 457, and DCP accounts. Move the money over to them and then you can buy any ETFs (e.g., Vanguard, iShares) to your heart's content.
by fundtalker123
Thu Apr 16, 2020 4:46 pm
Forum: Personal Finance (Not Investing)
Topic: Not allowed to reduce retirement plan contributions??
Replies: 8
Views: 1237

Re: Not allowed to reduce retirement plan contributions??

The exact wording in the plan document is: "Any such election to participate or not participate shall be irrevocable for the duration of your employment. That seems pretty clear... what are you confused about? Did your spouse not read or understand the document when she signed up? The fact that folks who didn't sign up get their $57K in payroll is irrelevant. Your spouse signed up to a plan that was clear about what it required. +1 It also looks like the easiest way to get out of it is to end employment with this company. Does the company hire sub-contractors? If you’ve already saved enough to retire, why not retire now? Or at least stop contributing so much to tax-deferred. If you (OP) are working and also contributing to tax-deferre...
by fundtalker123
Thu Apr 16, 2020 4:42 pm
Forum: Personal Finance (Not Investing)
Topic: Not allowed to reduce retirement plan contributions??
Replies: 8
Views: 1237

Re: Not allowed to reduce retirement plan contributions??

When first employed ~12 years ago my spouse signed up to contribute certain % of salary to reach the maximum allowed (currently 57k per year). But now we wish we could reduce contributions, but were told it is not possible to change, though we wonder if this is correct. It almost certainly is correct. Can it really be that such a plan doesn't allow you to change that under any circumstances? If so, is that something required by federal regulations, or just an allowed arbitrary condition of such a plan? The exact wording in the plan document is: "Any such election to participate or not participate shall be irrevocable for the duration of your employment. Any eligible employee who elects not to be a Participant in the Plan shall not sha...
by fundtalker123
Thu Apr 16, 2020 4:20 pm
Forum: Personal Finance (Not Investing)
Topic: Not allowed to reduce retirement plan contributions??
Replies: 8
Views: 1237

Re: Not allowed to reduce retirement plan contributions??

Is this a public employee 401a plan? It use to be pretty common that they would make these opt in irrevocable so they could avoid a bunch of rules. At the risk of sounding stupid, I suppose your main source of help should be your plan administrator so I would call and ask. If you need the money, can’t you just make a penalty free withdrawal anyway (not sure but I assume same rules apply)? Thanks for your reply and insight on why a condition like that, which reduces an employee's flexibility for no obvious reason, might have been implemented. Regarding calling the "plan administrator", we have asked an the nominal answer is "no". But there have been many times in my life when one person said "no", and I found o...
by fundtalker123
Thu Apr 16, 2020 4:14 pm
Forum: Personal Finance (Not Investing)
Topic: Not allowed to reduce retirement plan contributions??
Replies: 8
Views: 1237

Re: Not allowed to reduce retirement plan contributions??

The exact wording in the plan document is: "Any such election to participate or not participate shall be irrevocable for the duration of your employment. That seems pretty clear... what are you confused about? Did your spouse not read or understand the document when she signed up? The fact that folks who didn't sign up get their $57K in payroll is irrelevant. Your spouse signed up to a plan that was clear about what it required. Mike To feel regrets because it is difficult to project life circumstances decades into the future is human, and to wonder if there are might be any way around a rule, no matter how clear it seems, is also. There have been plenty of times when there seemed to be a rule preventing something, and then I found ou...
by fundtalker123
Tue Apr 14, 2020 7:28 pm
Forum: Personal Finance (Not Investing)
Topic: Not allowed to reduce retirement plan contributions??
Replies: 8
Views: 1237

Not allowed to reduce retirement plan contributions??

Is anyone familiar with rules for retirement plans called "money purchase pension plan" and "profit sharing plan" - considered "qualified plans" that have a 2020 IRS contribution limit of $57,000? When first employed ~12 years ago my spouse signed up to contribute certain % of salary to reach the maximum allowed (currently 57k per year). But now we wish we could reduce contributions, but were told it is not possible to change, though we wonder if this is correct. Employees with the same job who did not elect to make these contributions just get paid $57k more instead of the employer "contributing" this amount into the plans. Can it really be that such a plan doesn't allow you to change that under any ...
by fundtalker123
Mon Apr 29, 2019 9:38 pm
Forum: Personal Consumer Issues
Topic: College admission inputs - Purdue vs local SJSU vs others
Replies: 58
Views: 5618

Re: College admission inputs - Purdue vs local SJSU vs others

The two that I view as most respectable in terms of quality are Purdue and U Wisconsin.
by fundtalker123
Mon Apr 01, 2019 11:05 pm
Forum: Personal Finance (Not Investing)
Topic: Amend Return if no tax due (corrected 1099r's)
Replies: 10
Views: 1089

Re: Amend Return if no tax due (corrected 1099r's)

cowdogman wrote: Mon Apr 01, 2019 9:08 am I agree with Katiesu regarding the rollover.

OP: What was in Box 5 of the 1099-R with Code E? $7,000?
Yes Box 5 lists the same $7k as Box 1
by fundtalker123
Sun Mar 31, 2019 6:21 pm
Forum: Personal Finance (Not Investing)
Topic: Amend Return if no tax due (corrected 1099r's)
Replies: 10
Views: 1089

Re: Amend Return if no tax due (corrected 1099r's)

cowdogman wrote: Sun Mar 31, 2019 3:40 pm The 1099-R with Code E: Was it issued in 2019 for a distribution in 2018? Box 1 is $7,000 and Box 2a is "0" (or is it blank)?

The 2017 return: Was the $7,000 included in taxable income?
Not sure when Code E 1099-r was issued - It is marked 2017 and "corrected" although there was not an "original" issued before I filed in april 2017. It seems that the $7000 was retroactively (in 2018) considered "distributed" out by the plan in 2017 because I "took it out" by rolling it into an IRA...not sure they should have considered it that way, but they did... and Box 2a is "0". These were after tax contributions, so $7,000 was included in taxable income on 2017 return.
by fundtalker123
Sun Mar 31, 2019 1:18 pm
Forum: Personal Finance (Not Investing)
Topic: Amend Return if no tax due (corrected 1099r's)
Replies: 10
Views: 1089

Amend Return if no tax due (corrected 1099r's)

Should I submit an amended 2017 return due to one corrected 1099-r and one new 1099r even if they don't affect the tax due?

The corrected 1099r has taxable amount=$5.35 on a 54k retirement plan distribution converted to Roth IRA; the $5.35 is unchanged but distribution revised from 61k to 54k. The new 1099r is taxable amount =0, on a 7k retirement plan distribution due to return of over-contribution amount.

I was thinking to not amend, because all the additional info I would provide by filing a 1040x is info the IRS already has due to their receiving the 1099-r's.
by fundtalker123
Wed Mar 06, 2019 9:19 pm
Forum: Personal Finance (Not Investing)
Topic: Unexpected Issue with our Umbrella Policy
Replies: 30
Views: 4311

Re: Unexpected Issue with our Umbrella Policy

I had the same issue with a family member living in our house. The solution was that he could simply be covered under our auto insurance, and didn't need his own separate auto insurance.
by fundtalker123
Fri Feb 22, 2019 7:53 pm
Forum: Personal Finance (Not Investing)
Topic: Why do so many people quote "You will likely be in a lower tax bracket in retirement"
Replies: 756
Views: 74991

Re: Why do so many people quote "You will likely be in a lower tax bracket in retirement"

I recently became worried that my tax rate could well be as high or higher in retirement than now and at age between 40 and 50 decided to stop contributing to tax deferred retirement plans. I had the vast majority of savings in tax deferred plans, and felt I should diversify in case my tax rates are actually higher in the future. Based on our level of savings, pension to be received, and likely inheritance, our income in retirement could be as high or higher than it is now. So I decided that tax deferred is overrated. I calculated that most of the rather small predicted benefit of tax deferral (deferral of taxes on dividends, and their effect on compounding), if tax rates were equal in retirement, comes mainly from contributions in the earl...
by fundtalker123
Mon Aug 06, 2018 10:56 pm
Forum: Investing - Theory, News & General
Topic: "Age in Bonds" fails almost everyone
Replies: 217
Views: 33757

Re: "Age in Bonds" fails almost everyone

But "Age in Bonds" with virtual certainty would do better at protecting you from a theoretically possible huge drop in stocks (e.g., by >50%, with decades long recovery) that could occur right before retirement. So if you've got "enough" to retire on as you approach retirement why risk 90% of it at the roulette table just because you are greedy for more?
by fundtalker123
Mon Apr 09, 2018 5:45 pm
Forum: Personal Finance (Not Investing)
Topic: Is recharacterization of Roth contribution to Trad IRA a "contribution"?
Replies: 3
Views: 443

Is recharacterization of Roth contribution to Trad IRA a "contribution"?

I made a Roth IRA contribution for 2017. Later in 2017 I recharacterized this to Traditional IRA. I am not eligible to make deductible IRA contributions.

Is this recharacterization considered a "non-deductible contribution" that should be entered on Line 1 of Form 8606 of my 2017 tax form?
by fundtalker123
Mon Apr 02, 2018 4:00 pm
Forum: Personal Finance (Not Investing)
Topic: What age is the best to give a child control of an inheritance?
Replies: 192
Views: 20112

Re: What age is the best to give a child control of an inheritance?

How about NEVER, in the following sense: A common approach in trusts is to specify the beneficiaries can spend the investment income, but not the principal. If they foolishly overspend, at least the principal should last a while - and the ongoing income could, for example, help them in retirement (which they may have forgotten to save for themselves). The principal could also be passed down estate-tax free to benefit subsequent generations. This seems entirely reasonable to me, though I suppose perhaps it usually applies to assets on the order of $10 million or greater. The people who are saying you have to give it all to the kid when they’re 18 or even 35 or else you will insult them are crazy! First, this is your $, not theirs! Nothing sa...
by fundtalker123
Tue Mar 27, 2018 11:25 am
Forum: Personal Investments
Topic: Help needed before I go mad :D
Replies: 53
Views: 6864

Re: Help needed before I go mad :D

Set it and forget it using balanced funds. Everyone wants to make it more complicated, but that is unnecessary
by fundtalker123
Wed Mar 21, 2018 12:07 am
Forum: Personal Consumer Issues
Topic: Most Effective Rat Poison
Replies: 42
Views: 6710

Re: Most Effective Rat Poison

Just write your adviser a letter instructing to move your investments to Vanguard.
by fundtalker123
Sat Mar 10, 2018 10:06 pm
Forum: Personal Finance (Not Investing)
Topic: Tax Problem with Roth IRA recharacterizations
Replies: 2
Views: 502

Tax Problem with Roth IRA recharacterizations

I messed up in Jan 2017 and contributed directly to Roth IRAs for 2016 and 2017. I was supposed to contribute to Traditional and convert to Roth (because I don't qualify for direct contribution to Roth). So before filing 2016 taxes I recharacterized both the direct Roth contributions. Then, in 2017 prior to Apr. 15, I sought to "redo properly" by contributing to traditional IRA for both 2016 and 2017 ($5,500 + $5,500) (should be non-deductible) and converting both to Roth Now I'm doing my 2017 Taxes in Turbotax. I have 2017 1099-R's for both recharacterizations (distribution codes N and R) and 1099-R's for both subsequent conversions to Roth (distribution code 2). I thought only earnings on the funds that were recharacterized (dur...
by fundtalker123
Mon Jan 22, 2018 10:59 pm
Forum: Personal Finance (Not Investing)
Topic: Lively HSA offers first dollar investing
Replies: 352
Views: 78112

Re: New HSA provider Lively offers investments for $30/yr fee

I spent a long time looking for a good HSA because my employer one "sucked" - I decided on "Elements Financial". After I invested the employer changed providers and the plan is much better. Now I'm considering switching to the employer contracted one...
by fundtalker123
Mon Jan 22, 2018 10:57 pm
Forum: Personal Consumer Issues
Topic: Jeans without strong chemical odor
Replies: 36
Views: 8013

Re: Jeans without strong chemical odor

Lee & Levis seem ok
by fundtalker123
Mon Jan 22, 2018 10:56 pm
Forum: Personal Consumer Issues
Topic: Kauai Travel Tips
Replies: 43
Views: 3873

Re: Kauai Travel Tips

Alexa9 wrote: Mon Jan 22, 2018 8:34 am
- Boat Tour of North Shore's Na Pali Coast
+++1, but inquire about whether the sea will be gentle or rough. If it is going to be rough, consider postponing, or buy anti-sea sickness medicine if that bothers you...
by fundtalker123
Mon Jan 22, 2018 10:54 pm
Forum: Personal Consumer Issues
Topic: Retirement causes brain function to rapidly decline, warn scientists
Replies: 13
Views: 2580

Re: Retirement causes brain function to rapidly decline, warn scientists

I'm a professor of biochemistry. I have so much administrative BS to deal with, I wish I could retire so I had time to think about biochemistry.
by fundtalker123
Mon Jul 17, 2017 2:52 pm
Forum: Personal Finance (Not Investing)
Topic: Reimburse UTMA expenditure without affecting gift tax exclusion?
Replies: 3
Views: 541

Re: Reimburse UTMA expenditure without affecting gift tax exclusion?

TropikThunder wrote: Google is your friend. Direct tuition payments to the institution are exempt from gift tax consideration:
https://www.irs.gov/businesses/small-bu ... gift-taxes
The only caveat is that you have to pay the university directly. Any sort of reimbursement or trust payment voids the exclusion.
Thanks for replying -- but I can't pay directly because I don't have the funds available. I want to use my son's UTMA funds to pay the $15k GRADE school tuition (or transfer me the $15k first to pay it if that is the better way), then reimburse him the $15k later, and hopefully have this not affect my ability to give him $14k later under the gift tax exclusion.

Anyone know if that's ok?
by fundtalker123
Mon Jul 17, 2017 1:31 pm
Forum: Personal Finance (Not Investing)
Topic: Reimburse UTMA expenditure without affecting gift tax exclusion?
Replies: 3
Views: 541

Reimburse UTMA expenditure without affecting gift tax exclusion?

I want to pay my kid's $15k grade school tuition but don't have the cash readily available (I could make it available if I had to but it would be inconvenient). Instead can I pay it using funds in his UTMA account and then in a couple of months reimburse him $15k by transferring the same amount to his UTMA **without affecting amount I can also give him later under gift tax exclusion?** Later in the year I also want to gift him $14k (maximum amount under gift tax exclusion). I want to be sure the $15k "reimbursement" I paid him earlier won't affect this? Or, if needed, could this be transacted as a short term loan of $15k from my son to me? He loans me $15k by transferring $15k to my account, I use it to pay the tuition, then later...
by fundtalker123
Thu Jul 07, 2016 4:26 pm
Forum: Personal Investments
Topic: Simplification vs. "Optimization"
Replies: 36
Views: 4629

Simplification vs. "Optimization"

This issue has been discussed a lot before, but continues to bother me Should we: (1) Simplify by investing everything (where possible) in balanced, market cap weighted index funds like Vanguard Lifestrategy (2) "Optimize" expected reward/risk by tilting with "goodies" such as Small Cap Value, REIT, Emerging Markets, Ibonds Specific issues: - We have about 20 different accounts (IRAs, 403b, 401k, 457, DCP, HSA, 529s, UTMAs, annuity, etc.) to exploit tax advantages, so this aspect cannot be simplified, although we could just put balanced index funds like Lifestrategy in almost all of these accounts - Desired/Current allocation is ~70% stocks, 30% fixed income, 35% of stocks in foreign (the 40% that Vanguard Lifestrategy u...
by fundtalker123
Fri Apr 17, 2015 7:36 pm
Forum: Personal Finance (Not Investing)
Topic: Who is covered by your HSA?
Replies: 8
Views: 1893

Re: Who is covered by your HSA?

Regarding reimbursement for medical expenses for a child dependent, couldn't withdrawal from the HSA for reimbursement for expenses while they were a minor/dependent occur long after the child is no longer a minor dependent? e.g. Pay $100 out of pocket for doctor visit, not withdrawing HSA funds, when child is 5 years old, save the receipt, then withdraw $100 tax free from the HSA 30 years later, after reaping the benefit of compounded investment returns, to reimburse oneself for that expense, even though the child is now 35 years old and no longer a dependent?
by fundtalker123
Sat Dec 27, 2014 3:01 pm
Forum: Personal Consumer Issues
Topic: Electronic gizmos and apps you actually use a lot
Replies: 14
Views: 2509

Electronic gizmos and apps you actually use a lot

Most people buy electronic Gizmos and apps (software) nowadays. Some end up collecting dust while others are life changing. What are the gizmos and apps you actually find that you use and enjoy at lot?

Here are the ones I actually use:

Iphone 5, $600
- Google maps
- Camera
- Amazon prime music & cloud drive (saves photos)
- StreamToMe (stream music from home PC)
- Pandora

Amazon Fire TV (streaming box), $70
- Netflix, Amazon prime video & music
- Pandora
- XBMC (stream video & music from PC)

Ooma box (free home phone over internet), $120

Windows 7 Media Center (records TV on Dell PC)

Nikon D3200 digital camera, $300
Nikon SB-700 flash, $300
by fundtalker123
Tue Dec 02, 2014 9:21 pm
Forum: Personal Consumer Issues
Topic: A simple coffee maker
Replies: 38
Views: 12112

Re: A simple coffee maker

Tough question. Does it need to have wi-fi or not? When you say "switch", I assume you mean smartphone enabled switch over wifi?
by fundtalker123
Fri Nov 21, 2014 10:14 am
Forum: Personal Finance (Not Investing)
Topic: lease car to family member - liability insurance?
Replies: 1
Views: 1257

lease car to family member - liability insurance?

I own two cars in my name. One is often driven by a family member. My understanding is that if he causes an accident I can be sued as the car is registered in my name, is that right? I have a lot of assets and he has zero assets. My insurance company won't allow him to be covered under my umbrella insurance. My thought is maybe I can lease the car to him, register it in his name, and he can get his own insurance. Does that make sense? If so, how would I go about leasing the car to him? Or is there another solution to this problem?
by fundtalker123
Tue Oct 14, 2014 9:41 pm
Forum: Personal Investments
Topic: Offered Cash Balance Plan - RED FLAGS? (physician)
Replies: 16
Views: 2439

Re: Offered Cash Balance Plan - RED FLAGS? (physician)

No offense and not to be cynical, but don't think it matters what you or your wife think. If she works for a big employer it ONLY matters how seducible the one calling the shots in HR or on the benefits committee is to the financial advisors pitching the product. If you have questions/ reservations I would direct them not here, but find the person who is calling the shots. The sad thing is those who are calling the shots seem to know A LOT less then the ones they are supposed to be representing! If she is in a large physician group as a rank and file employee I doubt it will matter what she thinks. The goal of these organizations is to separate the physician from the management of the company for better or worse. Good luck. Sounds about ri...
by fundtalker123
Tue Oct 14, 2014 9:31 pm
Forum: Personal Investments
Topic: Offered Cash Balance Plan - RED FLAGS? (physician)
Replies: 16
Views: 2439

Re: Offered Cash Balance Plan - RED FLAGS? (physician)

The cash balance contribution comes from the employer. I assume they are offering a 401(k) as well but your wife doesn't have to make a contribution to a CB to benefit. It's a free benefit to her. Unless you are making the claim that her increased benefit in the CB plan will reduce her benefit in 401(k) or salary, why would you oppose this? Is she one of the partners? I think the reasons I'm opposed are: 1. The specific management company and fund being offered have very high fees, and I believe it is likely that a different company probably offers much better options in terms of lower management fee and lower fund fees. I imagine the fee could be <0.1% management fee, and <0.1% fund fee (using index funds), rather than 1.5% 2. It seems po...
by fundtalker123
Tue Oct 14, 2014 2:15 pm
Forum: Personal Investments
Topic: Offered Cash Balance Plan - RED FLAGS? (physician)
Replies: 16
Views: 2439

Re: Offered Cash Balance Plan - RED FLAGS? (physician)

The cash balance contribution comes from the employer. I assume they are offering a 401(k) as well but your wife doesn't have to make a contribution to a CB to benefit. It's a free benefit to her. Unless you are making the claim that her increased benefit in the CB plan will reduce her benefit in 401(k) or salary, why would you oppose this? Is she one of the partners? I think the reasons I'm opposed are: 1. The specific management company and fund being offered have very high fees, and I believe it is likely that a different company probably offers much better options in terms of lower management fee and lower fund fees. I imagine the fee could be <0.1% management fee, and <0.1% fund fee (using index funds), rather than 1.5% 2. It seems po...
by fundtalker123
Tue Oct 14, 2014 1:02 pm
Forum: Personal Investments
Topic: Offered Cash Balance Plan - RED FLAGS? (physician)
Replies: 16
Views: 2439

Re: Offered Cash Balance Plan - RED FLAGS? (physician)

dhodson wrote:The main question is who pays for the plan. Does it come from her salary or this from the company in addition to her salary. Sounds like the former. If so then this isn't such a good deal for you bc of the huge fees associated with it.
I believe it would be mainly from her salary, but the return of principle guarantee (0% lowest return) has to be guaranteed by company contributions if needed. But since any company contributions would come out of company profit, I think this would directly lower salaries and bonuses, right?
by fundtalker123
Tue Oct 14, 2014 12:24 pm
Forum: Personal Investments
Topic: Offered Cash Balance Plan - RED FLAGS? (physician)
Replies: 16
Views: 2439

Offered Cash Balance Plan - RED FLAGS? (physician)

Wife's employer, a large physician group, is considering offering a "Cash Balance Plan" and wants employee feedback. I've read previous posts on this topic, but need feedback on the specific plan. - Allows more pre-tax savings on top of $52k (401k+profit sharing) limit. Vaguely stated to be up to ~$83k-$230k depending on age, income, etc, - Appears to allow tax-deferred investment with rollover to IRA upon retirement, possible reduction of tax-bracket due to reduced income, and possible lower tax rates upon withdrawl (if income were lower then). RED FLAGS I'm seeing so far: - Specific plan is: http://cashbalancedesign.com/index.html All assets invested in "Payden/Kravitz Cash Balance Plan Fund", which has a HUGE manageme...
by fundtalker123
Mon Aug 04, 2014 5:05 pm
Forum: Investing - Theory, News & General
Topic: not all small value funds are created equal
Replies: 48
Views: 6078

Re: not all small value funds are created equal

Another very conspicuous difference is that the expense ratio of the bridgeway fund is 0.6%, plus it is only available through an advisor. The advisor will probably charge an extra fee of at least 0.4%, so the total expense ratio is >1%

Compare that with the 0.1% expense ratio of the Vanguard Small Cap Value Index Admiral (VSIAX - note that the article compares with the investor class fund, not admiral which has much lower expense ratio)

Thus, perhaps the clearest difference that jumps out at me is that one fund has a 10 times (!) higher expense ratio than the other

John Bogle's "costs matter" warning should be strongly considered here
by fundtalker123
Tue Apr 29, 2014 3:17 pm
Forum: Personal Finance (Not Investing)
Topic: Change the name of the "Backdoor Roth" to something else?
Replies: 41
Views: 4108

Re: Change the name of the "Backdoor Roth" to something else

I think it is possible that some lawmakers read some online discussion forums. I do not like the idea that if they read about something described using language which incorrectly suggests some trick being pulled, as opposed to simply describing a perfectly legal, logical, and (one can only assume) intended means for retirement savings for members of the public, they might incorrectly decide that some laws need changing. Therefore I do not like at all the use of such a term.
by fundtalker123
Sun Apr 06, 2014 11:11 pm
Forum: Personal Finance (Not Investing)
Topic: Can minor child claim self exemption on 1040? [generally no]
Replies: 3
Views: 502

Re: Can minor child claim self exemption on 1040?

Iorek wrote:From Pub 17 -- "You can take one exemption for yourself unless you can be claimed as a dependent by another taxpayer. If another taxpayer is entitled to claim you as a dependent, you cannot take an exemption for yourself even if the other taxpayer does not actually claim you as a dependent. "
Seems pretty clear, thanks. The disappearance of this exemption is something I hadn't appreciated....and now that I do appreciate it, I frankly don't appreciate it.
by fundtalker123
Sun Apr 06, 2014 10:57 pm
Forum: Personal Finance (Not Investing)
Topic: Can minor child claim self exemption on 1040? [generally no]
Replies: 3
Views: 502

Can minor child claim self exemption on 1040? [generally no]

Question: If a parent chooses to NOT claim a minor child as a dependent, then can the child claim 1 "self" exemption (line 6a) on the child's 1040 (filed to report investment income). I have not located clear instructions on this -- line 6a says "If someone can claim you as a dependent, do not check box 6a (i.e., don't mark 1 exemption for yourself). But does that mean you can't check the box just because someone "CAN claim you as a dependent (regardless of whether they do or not)...." or can that be interpreted to mean "If someone does claim you as a dependent (i.e., actually enters it on their 1040)..." It looks like many will no longer, as of tax rules new for 2013 (as opposed to 2012), get exemption cr...
by fundtalker123
Mon Mar 10, 2014 9:47 pm
Forum: Investing - Theory, News & General
Topic: Is 529 plans that bad? [White Coat Investor article]
Replies: 34
Views: 4706

Re: Is 529 plans that bad? [White Coat Investor article]

Example below where the tax savings could be at least ~$500k and probably more - do I have anything wrong? Two kids and you front load $250k (the current cost of 4 years private college) into each of their 529s (by starting to contribute before birth and changing beneficiary). Invest in Vanguard 529 with virtually negligible costs for a balanced 75/25 fund. Assume an 8% annualized return, the approximate inflation rate of college tuition in recent decades, and the $500k grows to ~$2 million after 18 years. If your federal dividend/capital gains tax rate is the maximum (20%) and state dividend/capital gains tax rate is maximum (10%), you avoid paying at least 30% tax on the gains (actually much more since there would be tax deferred reinvest...
by fundtalker123
Fri Nov 08, 2013 10:14 pm
Forum: Personal Finance (Not Investing)
Topic: Confusing analysis of my HSA vs PPO costs
Replies: 5
Views: 1312

Confusing analysis of my HSA vs PPO costs

Below is my attempt to compare effective costs of the HSA health plan vs. PPO plan we are offered. I think the HSA is the clear winner for us, but find it pretty confusing given tax considerations so any feedback is appreciated The PPO option costs $4400/yr (pretax), no deductible, mostly only small copays in network, max out of pocket $4500 The HSA option costs $1680/yr (pretax), $2500 deductible, 20% of costs beyond, max out of pocket $6400 BUT the HSA also has the additional benefits: 1. Employer contributes $1000 to the HSA (worth $1750 (=1000/0.57) in extra pretax $ if used for medical expenses, given 43% marginal federal + state tax rate) 2. We can make $5550 additional tax deductible contribution to HSA -Would lower tax due by $1660 ...
by fundtalker123
Tue Nov 05, 2013 1:15 pm
Forum: Personal Finance (Not Investing)
Topic: Marginal tax rate per turbotax lower than expected?
Replies: 18
Views: 2101

Re: Marginal tax rate per turbotax lower than expected?

Bob's not my name wrote: I assumed no state income tax in this example (that is, I assumed the itemized deductions were all mortgage interest, property tax, and charitable donations) to avoid muddying this examination of the federal tax structure.

Hmmm, could it be that my calculation is muddied by the inclusion of a constant $50k state tax deduction, and that I'm not increasing the wages on the state form when I test the effect of increasing wages by $1000 on the federal form? But, no that doesn't seem to affect it at all....
by fundtalker123
Tue Nov 05, 2013 1:09 pm
Forum: Personal Finance (Not Investing)
Topic: Marginal tax rate per turbotax lower than expected?
Replies: 18
Views: 2101

Re: Marginal tax rate per turbotax lower than expected?

Ketawa wrote:
fundtalker123 wrote:Even if I add 1,000,000 to wages (i.e., raise it from 490,000 to 1,490,000) the tax only goes up 330,000, implying 33% marginal rate, when I expected it to be 35%.
33% is only the average tax rate for that next $1,000,000 in wages, not the marginal tax rate. It could be possible that the next $286,000 or so is taxed at 28%, and the next $714,000 is taxed at 35%. Just speculating.
Yes, you're right, I should try increasing base values and add $100 income each time to see how much the increase is. But the threshold income for 35% marginal seems, in practice, much higher than $388k implied by tables, unless I'm misusing turbotax somehow.
by fundtalker123
Tue Nov 05, 2013 1:06 pm
Forum: Personal Finance (Not Investing)
Topic: Marginal tax rate per turbotax lower than expected?
Replies: 18
Views: 2101

Re: Marginal tax rate per turbotax lower than expected?

Tables say 2012 marginal tax rate is 35% for income >388k. Our taxable income is ~490k (virtually all due to ordinary wages), so I thought 35% applied. But if I add $1k to wage income using turbotax the calculated tax due goes up ~28%, so seems like the marginal rate is 28%. Same happens if I add $100k. If I add $1 mill tax goes up 33%. If I add $2 mill to income the tax does finally go up 35%. Can anyone explain this? Am I misinterpreting this somehow? Also: how can I predict my marginal rate for 2013? 2012 marginal rate table: http://en.wikipedia.org/wiki/Income_tax_in_the_United_States#Marginal_tax_rates_since_2008 Most likely AMT (alternative minimum tax) is causing this. Look at lines 45 (total tax) and line 46 (AMT) on the two return...
by fundtalker123
Tue Nov 05, 2013 12:59 pm
Forum: Personal Finance (Not Investing)
Topic: Marginal tax rate per turbotax lower than expected?
Replies: 18
Views: 2101

Re: Marginal tax rate per turbotax lower than expected?

In practice, virtually no marginal dollar will get taxed at the "Marginal Tax Rate" listed in the tables. All the various factors (some of which are mentioned by Bob's not my name, above) are just too complicated. Based on the numbers you gave, I am guessing you have a lot of charitable deductions. Why even try to predict your exact marginal rate? It's enough to know it's in the ballpark of 30% federal, plus any state/local/other applicable taxes. I would expect that your average rate is far lower than even 28%. Even in my AMT days, I think the highest average rate I had was 23%, while my highest total marginal rate was about 44% (thanks to state taxes, phaseouts, etc.) Thanks for your reply. I'm just surprised how high income ha...
by fundtalker123
Tue Nov 05, 2013 12:55 pm
Forum: Personal Finance (Not Investing)
Topic: Marginal tax rate per turbotax lower than expected?
Replies: 18
Views: 2101

Re: Marginal tax rate per turbotax lower than expected?

Sounds like you're comparing marginal rate to average rate. Sounds like you might also be overlooking tax effects outside the nominal brackets, such as AMT, phaseouts of personal exemptions and itemized deductions, ACA tax on wages, etc. Thanks for your reply. I'm not calculating average rate. I add $1000 to wages and the tax due goes up $280, on a taxable income of ~490k, so that means the effective marginal rate is 28%. Probably you are right that it is due to complex effects of AMT, deductions, etc, but I'm surprised because I thought AMT, if anything, should increase marginal rate? Also, I thought I did not have any extraordinary deductions. Total wages are ~590k and taxable income is ~490k. I will study your examples. Even if I add 1,...