Search found 13366 matches

by jeffyscott
Mon Mar 18, 2024 4:13 pm
Forum: Personal Finance (Not Investing)
Topic: Paying for grandparents to babysit, medical insurance implications
Replies: 31
Views: 2942

Re: Paying for grandparents to babysit, medical insurance implications

This may be of interest:
Alien lawfully present in the United States.

Certain aliens with household income below 100% of the federal poverty line are not eligible for Medicaid because of their immigration status. You may qualify for the PTC if your household income is less than 100% of the federal poverty line if you meet all of the following requirements.
...
https://www.irs.gov/instructions/i8962# ... k100077021

So it seems you may just have to somehow convince the system that they really are not eligible for medicaid, due to the green card provisions?
by jeffyscott
Mon Mar 18, 2024 3:56 pm
Forum: Personal Finance (Not Investing)
Topic: Paying for grandparents to babysit, medical insurance implications
Replies: 31
Views: 2942

Re: Paying for grandparents to babysit, medical insurance implications

Regressor wrote: Mon Mar 18, 2024 3:32 pm However, the conditions my my parents' legal status (USA resident with green card) states that they cannot use any "means-based" programs, which MedicAid is but Obamacare/ACA is not.
So they are not supposed to apply for medicaid, but if they try to apply for ACA coverage the system won't let them, instead directing them to medicaid due to low income?

What if they overstate their expected income on the ACA site? This will reduce their subsidies, but be corrected when they file taxes. As long as income is at least 100% of poverty they are still eligible for subsidies.

(I can't imagine there'd be a clawback of the subsidies even if actual income ends up below 100% of poverty, but I have no idea what the law is on that.)
by jeffyscott
Mon Mar 18, 2024 3:35 pm
Forum: Investing - Theory, News & General
Topic: VTIAX and VFWAX are only 90% international, VSS only 85%
Replies: 4
Views: 798

Re: VTIAX and VTWAX are only 90% international, VSS only 85%

asset_chaos wrote: Sun Mar 17, 2024 8:16 pm I clearly don't understand how this is reported. How does total world (vtwax) have 90% foreign income and 80% qualified dividends, per the 1099 I got for total world?
OP meant VFWAX, check the image.
by jeffyscott
Mon Mar 18, 2024 12:50 pm
Forum: Personal Finance (Not Investing)
Topic: Have any of you Frugal Zebras Changed Your (Spending) Stripes?
Replies: 129
Views: 10604

Re: Have any of you Frugal Zebras Changed Your (Spending) Stripes?

If I were to splurge, I think a likely possibility would be a beachfront vacation home. We probably could pull that off with what we have. The hassles of owning and the fact that we would probably have to rent it to others make it unappealing. As a billionaire, I could buy it and let it sit empty for 10 or 11 months each year. Even as a billionaire the house would require maintenance and repairs. Yes, you could pay someone to manage the house, but you could also pay someone to manage it as a rental even as a non-billionaire. I agree with your general point though, I much rather rent a vacation home than buy. Right, the difference would be not needing to rent it to others. Doing that makes it not much different from just renting a place for...
by jeffyscott
Mon Mar 18, 2024 11:42 am
Forum: Personal Finance (Not Investing)
Topic: Have any of you Frugal Zebras Changed Your (Spending) Stripes?
Replies: 129
Views: 10604

Re: Have any of you Frugal Zebras Changed Your (Spending) Stripes?

As for "being a boss", this actually is something that I keenly enjoy, though I have zero basis to assert any competence or success. There is a certain fantasy appeal to having lived 200 years ago, when even upper-middle-class people had servants... never mind the paucity of healthcare or tech-gadgets. Indeed, one reason that the prospect of retirement is daunting, is that boss-opportunity in the office, however minor or petty, is gone. Our character rarely changes as we age; thus the premise of this thread, yes? A disinclination towards frivolous spending, if engrained during one's youth (and comparative poverty), endures. But if I were hypothetically to splurge, it would be, on getting served... as opposed to acquiring stuff, o...
by jeffyscott
Mon Mar 18, 2024 10:07 am
Forum: Investing - Theory, News & General
Topic: Minimum TIPS lot size at Fidelity?
Replies: 15
Views: 1667

Re: Minimum TIPS lot size at Fidelity?

^ I don't know if it's typical or not, but I guess if the depth of book doesn't show anyone willing to sell less than 5, then you can't buy less than 5.

Schwab has quotes for min 1 for both of those, FWIW. Schwab also allows you to put in the quantity desired when searching, it doesn't appear that Fidelity has that feature?
by jeffyscott
Mon Mar 18, 2024 9:21 am
Forum: Personal Finance (Not Investing)
Topic: Have any of you Frugal Zebras Changed Your (Spending) Stripes?
Replies: 129
Views: 10604

Re: Have any of you Frugal Zebras Changed Your (Spending) Stripes?

Billionaire. Probably multi-billionaire. Even if I had $100M (which assuredly I don't!), I couldn't justify an extra $5000 or $10000 just for a better airline seat. But before spending that kind of money on occasional travel, I'd splurge on something even costlier, but more systematic... something that's useful recurringly. Catered meals at my residence. Gardener, maid, and similar hired-help. Financial helper... not an investment advisor, but an accountant, tax preparer, somebody who handles my bills and so on, so that I never see a monthly statement again. In other words, servants. If you were a billionaire, you would most likely have a private jet. About the other items you mentioned, we have used these services for a long time and we a...
by jeffyscott
Mon Mar 18, 2024 9:01 am
Forum: Investing - Theory, News & General
Topic: VTSAX vs VTI
Replies: 40
Views: 6448

Re: VTSAX vs VTI

There was a post on a thread recently where someone calculated that you’d actually come out slightly ahead (by $11) with VTSAX instead of VTI. I don’t think 1 bps is going to make any difference whatsoever over the long term. Would love to see that post, but I believe it. Maybe it's this: Admiral vs ETFs: Some Numbers . It'd probably be better to point to Bill Bernstein's correction in that thread: https://www.bogleheads.org/forum/viewtopic.php?p=6463433#p6463433 John Rekenthaler pointed out a flaw in my original method, which was using daily returns, which he tells me are unreliable; you have to use the monthlies. When you do, ending 12/31, here's what you get: VTSAX/VTI 10.70/10.69 over 15 years VFIAX/VOO 16.51/16.52 over 10 years VEUSX/...
by jeffyscott
Sun Mar 17, 2024 8:45 am
Forum: Investing - Theory, News & General
Topic: Morningstar's ratings for international stock funds are misleading
Replies: 28
Views: 2388

Re: Morningstar's ratings for international stock funds are misleading

Who invests based on M* ratings ? Me when I first started investing and didn't know enough to make better decisions on my own. Even in retrospect, I don't think it was a terrible decision. I could have done better on my own. Maybe. Could have done considerably worse too, and the odds probably weren't in my favor either. Honestly, I still apply this logic to reviews e.g. for restaurants. When faced with the unknown, stick to 4+ stars. You aren't guaranteed an amazing meal, but you can have a reasonable degree of confidence that you'll at least get a decent one. Except 4+ star restaurants typically stay 4+ stars for many years into the future. https://www.investopedia.com/articles/investing/013016/are-morningstars-best-mutual-funds-really-be...
by jeffyscott
Sat Mar 16, 2024 3:03 pm
Forum: Personal Finance (Not Investing)
Topic: Paying for grandparents to babysit, medical insurance implications
Replies: 31
Views: 2942

Re: Paying for grandparents to babysit, medical insurance implications

If only income can disqualify them from medicaid, then OP and spouse can each gift $18K to each grandparent. Then invest this $72K in something that pays about 5% and their income increases by $3600. Maybe that's enough?

But, this says they'd likely have to be permanent residents for 5 years in order to be eligible for medicaid:
https://www.healthcare.gov/immigrants/l ... mmigrants/
by jeffyscott
Sat Mar 16, 2024 9:39 am
Forum: Personal Finance (Not Investing)
Topic: Paying for grandparents to babysit, medical insurance implications
Replies: 31
Views: 2942

Re: Paying for grandparents to babysit, medical insurance implications

The above appears to be incorrect: ...in general, people age 65 or older who are not entitled to premium-free Medicare can purchase health insurance coverage in the Marketplace (except undocumented immigrants). If you sign up for a Marketplace plan, you will be eligible for premium tax credits to make the coverage in the Marketplace more affordable if your income is at least 100% of the federal poverty level ($14,580 for an individual in 2024). https://www.kff.org/faqs/faqs-health-insurance-marketplace-and-the-aca/i-am-turning-65-years-old-next-month-but-i-am-not-entitled-to-medicare-without-having-to-pay-a-premium-for-part-a-because-i-have-not-worked-long-enough-to-qualify-can-i-sign-up-for-a-marketplace-pla/ 100% of FPL is $20,440 for a f...
by jeffyscott
Sat Mar 16, 2024 9:16 am
Forum: Personal Finance (Not Investing)
Topic: Joint brokerage account - confusion
Replies: 5
Views: 1026

Re: Joint brokerage account - confusion

Referring to my Question 2... I don't know but I would guess that the location of the account wouldn't really matter. If I have correctly understood things that I have read online, commingling individual property with marital property can convert the individual property to marital property. So moving assets between accounts that are marital property and accounts that are not, might convert individual property to marital property, but that would be the case whether the accounts are at the same or different brokerages. I do plan to eventually try to get written confirmation of my understanding about our JTWROS account, by sending a secure message saying something like: My understanding is that in a community property state, when one spouse d...
by jeffyscott
Fri Mar 15, 2024 9:03 am
Forum: Personal Finance (Not Investing)
Topic: What's your primary credit card?
Replies: 117
Views: 10238

Re: What's your primary credit card?

BF3000 wrote: Mon Mar 11, 2024 8:13 pm
azanon wrote: Mon Mar 11, 2024 9:56 am Alliant Visa Signature - 2.5% cash back on all purchases.
This. Because 2.5% > 2%.
From what I see on their website, in order to get 2.5%, Alliant requires an average daily balance of $1,000 or more in a checking account that pays nearly nothing (0.25%). Keeping an extra $1000 in checking offsets the extra 0.5% on about $8-10K of purchases per year.
by jeffyscott
Thu Mar 14, 2024 8:56 pm
Forum: Personal Finance (Not Investing)
Topic: Active Schwab Users
Replies: 8
Views: 1036

Re: Active Schwab Users

You can't do it online, you have to fill out and upload a form.

Here's a short discussion on that topic:
viewtopic.php?t=391641
by jeffyscott
Thu Mar 14, 2024 8:45 pm
Forum: Personal Finance (Not Investing)
Topic: Joint brokerage account - confusion
Replies: 5
Views: 1026

Re: Joint brokerage account - confusion

3rd (JCP) says that in case of death - 50% (deceased spouse’s funds) will go to the designated heir. Does it mean that JCP does not allow to pass 50% upon death to the surviving spouse? Also, will there be a step-up basis to “designated heir”? I just went through this with Schwab. We had a joint community property account and discovered that it doesn't work as I had assumed. It was like you say, 1/2 the account would go to the deceased's estate, not just automatically become the surviving spouse's property. Of course the spouse could still be the heir designated in the will. This was discovered when we wanted to add beneficiaries and could not. We were told that JTWROS would work the way we wanted and there would still be stepped up cost b...
by jeffyscott
Mon Mar 11, 2024 11:02 pm
Forum: Personal Finance (Not Investing)
Topic: Schwab "joint account" vs. community property
Replies: 16
Views: 3897

Re: Schwab "joint account" vs. community property

Reopening this thread.... wondering if anyone found a resolution to this? Seems odd that they would allow a brokerage account to have CPWROS, but not a brokerage account with a checking account attached. Is there a workaround? Or are people just doing their checking account elsewhere? Re-reopening this... The solution that I was given was to change the accounts to JTWROS. All this required was uploading a signed note requesting the change with the account numbers. One thing to consider is that based on conversations I have had with Schwab and Etrade, it is straightforward to get the brokerage to record a full step up in basis in community property states upon the death of either spouse when accounts are titled either JTWROS or community pr...
by jeffyscott
Mon Mar 11, 2024 8:35 am
Forum: Personal Finance (Not Investing)
Topic: What's your primary credit card?
Replies: 117
Views: 10238

Re: What's your primary credit card?

madbrain wrote: Sun Mar 10, 2024 10:30 pm
gunny2 wrote: Sun Mar 10, 2024 10:27 pm
madbrain wrote: Sun Mar 10, 2024 10:21 pm I think you'll find that acceptance of Discover is far from universal. Not likely suitable as a primary card. You want a VISA or MC for primary, IMO.
? Because? (PS not agreeing or disagreeing per se, sincere question) It seems to be accepted almost everywhere.
One of our most frequented retail stores is Costco, and they don't. They may accept it on Costco.com .
They stopped accepting it even on the website sometime in the past year.
by jeffyscott
Mon Mar 11, 2024 8:33 am
Forum: Personal Finance (Not Investing)
Topic: What's your primary credit card?
Replies: 117
Views: 10238

Re: What's your primary credit card?

Lastrun wrote: Mon Mar 11, 2024 7:39 am As other posters have said, everyone should at least have a 2% cashback card to use for daily expenses.

These would be:
1. Fidelity Visa
2. Citi Double Cash
3. Wells Fargo Active Cash

Of these Fidelity is the best in class since they eliminated the foreign transaction fee.
Provided you have a Fidelity account or want to open one. The Fidelity card is also, I think, the only one that will automatically redeem the rewards.

Citi allows redemption in any amount to any bank account or as a statement credit (it's effectively 1.99% when redeemed for statement credit).

IIRC, Wells has to be increments of $25.

The Citi double cash is MasterCard and the other two are Visa. Not sure if that matters, other than for Costco members.
by jeffyscott
Mon Mar 11, 2024 8:12 am
Forum: Personal Investments
Topic: Vanguard Wellington Admiral Shares?
Replies: 4
Views: 1107

Re: Vanguard Wellington Admiral Shares?

Is the regular Wellington rated the same or not as good? Would Vanguard charge annual fees the same for either? They are both the exact same fund. The only difference would be the expense ratio. Wellington Admiral (VWENX) is 0.17% and Wellington Investor (VWELX) is 0.25%. So if you were to move your current $9K to VWELX, the difference would be 0.08% or $7.20 per year. With $50K, the difference between the two share classes would be $40 per year. I'd pay no attention to the star rating. Their medalist rating may, perhaps, be of some modest value and both are currently rated "gold". For the investor shares, VWELX, the Morningstar analyst review from last March concludes with: Based on our assessment of the fund’s People, Process, ...
by jeffyscott
Sun Mar 10, 2024 1:52 pm
Forum: Personal Finance (Not Investing)
Topic: Have any of you Frugal Zebras Changed Your (Spending) Stripes?
Replies: 129
Views: 10604

Re: Have any of you Frugal Zebras Changed Your (Spending) Stripes?

I have figured out over the years that the things I enjoy are cheap or free. ... If I were to resolve to spend more, I cannot imagine what I would buy. I would not go out and buy something simply to increase consumption. Exactly. About the only difference with your details is that we do like to travel some. But our activities when traveling amount to driving to different places and walking around looking at outdoor attractions (parks, beaches) and staying in modest accommodations. Coming up is a drive and 2-4 hotel nights to look at the eclipse. Some example ideas for your next trip.... That's a long list of things we mostly don't want to do (many we'd likely sooner pay to be excused from). The couple exceptions are things that we've alrea...
by jeffyscott
Sun Mar 10, 2024 10:15 am
Forum: Personal Finance (Not Investing)
Topic: Have any of you Frugal Zebras Changed Your (Spending) Stripes?
Replies: 129
Views: 10604

Re: Have any of you Frugal Zebras Changed Your (Spending) Stripes?

Yes, but it's a struggle. About two years ago I told DW that we should spend more money, specifically on better travel options, dining out, etc. We did--I got an AMEX Platinum card, we started flying business class (international) and staying in places like Conrad. We were more of a Choice Hotels type before, at least if we were paying. We make a point sometimes of going to a 'nicer' restaurant even if the bill is $200+. I'm not sure how well it is working out. We haven't been able to make the same transition for things like cars (mine is 21 years old and I don't want a new one, DW's car is 10 and she doesn't want a new one either) or household goods. Our bedroom furniture probably cost less than $1000 total. I'm much happier fixing someth...
by jeffyscott
Sat Mar 09, 2024 10:51 am
Forum: Investing - Theory, News & General
Topic: Minimum TIPS lot size at Fidelity?
Replies: 15
Views: 1667

Re: Minimum TIPS lot size at Fidelity?

Prokofiev wrote: Fri Mar 08, 2024 10:33 am That purchase strategy of buying 1-5 bonds every month or so might be costing you in the long run. As an exercise, try getting quotes for 1-5 bonds and then 50 bonds and finally 100-200 bonds. If you do this quickly, so that the market changes little while you're checking, you will see that the price per bond of a tiny order is much higher than the larger orders.
:confused

There is no need to do anything quickly, you can just look at the depth of book to see the ask prices and yields for different quantities.

Also, I'm not sure where you are seeing these big differences. As Kevin noted, the differences are small to non-existent at Fidelity and Schwab.
by jeffyscott
Thu Mar 07, 2024 2:30 pm
Forum: Investing - Theory, News & General
Topic: What happens to a TIPs ladder in IRA when you die?
Replies: 13
Views: 1808

Re: What happens to a TIPs ladder in IRA when you die?

I saw a recent email from a brokerage concerning an inherited IRA that was being split between beneficiaries, which indicated that the brokerage was going liquidate all the assets in the IRA and put the net into a money market. Not a problem for stocks, mutual funds or ETF’s, but could have negative effects for individual bonds or CD’s. I think I will ask my brokerage about that, I already had some other beneficiary related questions that I was planning to ask them about. I'd assumed liquidating or not would be up to the heirs and/or the deceased's representative and would like to know if I am mistaken about that. I recently did have the thought that at least for longer term bonds/CDs, I should aim for a number that can be divided evenly a...
by jeffyscott
Thu Mar 07, 2024 11:07 am
Forum: Investing - Theory, News & General
Topic: Lower networth meetings with Fidelity/Schwab/Vanguard
Replies: 8
Views: 1350

Re: Lower networth meetings with Fidelity/Schwab/Vanguard

Can close to retirement people with cash assets of $500,000 get a meeting that will help them transition from a fee based or percent based advisor? With $500K or more, they can have an assigned financial consultant at Schwab. There's no charge for this. I am not sure how that would go with the sort of people you are talking about. When I first met mine, he pretty quickly said something like "you seem pretty Self-Directed". He's never tried to sell me anything and has been helpful a with some things. I'm not sure if it would be different for some who is obviously not Self-Directed and/or with a different financial consultant. Fidelity used to do something similar but now just call it a single point of contact. I have no direct exp...
by jeffyscott
Wed Mar 06, 2024 9:09 am
Forum: Investing - Theory, News & General
Topic: Manually Rolling Treasuries at Schwab?
Replies: 22
Views: 3325

Re: Manually Rolling Treasuries at Schwab?

chemocean wrote: Tue Mar 05, 2024 11:07 pm THis works in an IRA because IRAs can't have margin accounts. If you tried this in the a taxable account, you might get charged a margin interest, I don't know.
No there's no margin required or used. There's no borrowing because the settlement dates are the same.
by jeffyscott
Tue Mar 05, 2024 2:38 pm
Forum: Investing - Theory, News & General
Topic: Trading Treasuries (nominal and TIPS)
Replies: 4107
Views: 455347

Re: Trading Treasuries (nominal and TIPS)

MtnBiker wrote: Tue Mar 05, 2024 11:09 am The Asking Price may be slightly above 100 ("selling at a premium") or slightly below 100 ("selling at a discount").
Not always slightly. The current prices of TIPS range from about 60 to 110, based on WSJ quotes. :sharebeer
by jeffyscott
Tue Mar 05, 2024 10:45 am
Forum: Personal Finance (Not Investing)
Topic: Free Online Tax Software - If it's free, you are the product.
Replies: 37
Views: 4319

Re: Free Online Tax Software - If it's free, you are the product.

Just a plug...I've used Cash app free tax filing last two years. It's been great. The interface is easy to use like Turbo tax and it's completely free. From CNET Money... Yes, Cash App Taxes is free. In fact, you’re never prompted to pay for the service or upgrade for premium support. The product earns money through targeted advertising for other financial services. Cash App Taxes also signs people up for the payment service Cash App, which makes money in a variety of ways, such as retailer hardware fees, transaction fees and selling bitcoin. There's a difference between "I didn't have to pay for it (with money)" and "completely free". Nothing is completely free. You have to download their app, but there's no requiremen...
by jeffyscott
Mon Mar 04, 2024 4:21 pm
Forum: Investing - Theory, News & General
Topic: Emerging Markets Stocks have been a complete disaster
Replies: 170
Views: 15835

Re: Emerging Markets Stocks have been a complete disaster

I'm gradually ratcheting my EM down, shifting about 1/2 of it to developed ex-US. I beginning to think that the relatively small difference in expected returns between international developed and EM is not worth the added risk. After seeing Russia go to $0, I'm particularly concerned about the political risks with regard to China. RA has 10 year expected returns at 7.5% real for EM and 6.4% for Ex-US Developed (with dev. Ex-US value at 8.6%, they don't have EM value listed). https://interactive.researchaffiliates.com/asset-allocation If there's one of those periods of high returns again, I may eliminate it. I don't know that I will have time to wait around for the subsequent one or if my kids will be patient enough to wait for it. Russia w...
by jeffyscott
Mon Mar 04, 2024 4:03 pm
Forum: Personal Finance (Not Investing)
Topic: If I own a house for 30 years and I replace the roof twice, do both replacements count as capital improvements?
Replies: 80
Views: 9862

Re: If I own a house for 30 years and I replace the roof twice, do both replacements count as capital improvements?

No. If you replace it, your current roof will not be part of what is being sold, after all. So I guess it is better to leave the 1st roof and lay the 2nd over it (which is not uncommon). :shock: Since the exemption (if applicable) is $500k for a couple most people don't need to worry about this. Just keep in mind that the $250,000 (single) and $500,000 (couple) exemptions are not indexed to inflation. It's true that when these exemptions were given many years ago, a relatively small number of people were affected. However, in some parts of the country, capital gains can be substantial for people who have owned their houses for many years. And even if the excess capital gains might not apply to you now, it might in the future so it's wise t...
by jeffyscott
Mon Mar 04, 2024 9:32 am
Forum: Investing - Theory, News & General
Topic: Emerging Markets Stocks have been a complete disaster
Replies: 170
Views: 15835

Re: Emerging Markets Stocks have been a complete disaster

I'm gradually ratcheting my EM down, shifting about 1/2 of it to developed ex-US. I beginning to think that the relatively small difference in expected returns between international developed and EM is not worth the added risk. After seeing Russia go to $0, I'm particularly concerned about the political risks with regard to China.

RA has 10 year expected returns at 7.5% real for EM and 6.4% for Ex-US Developed (with dev. Ex-US value at 8.6%, they don't have EM value listed).
https://interactive.researchaffiliates. ... allocation

If there's one of those periods of high returns again, I may eliminate it. I don't know that I will have time to wait around for the subsequent one or if my kids will be patient enough to wait for it.
by jeffyscott
Mon Mar 04, 2024 7:47 am
Forum: Personal Finance (Not Investing)
Topic: Responding to credit card "update your income" requests
Replies: 7
Views: 1064

Re: Responding to credit card "update your income" requests

whodidntante wrote: Mon Mar 04, 2024 6:53 am I typically type the number they're asking about in the box.
I do too, though due being retired, having most assets in tax deferred accounts, and doing Roth conversions it's not clear what number they really want. So I just put the gross income figure from our tax return in, which includes Roth conversions. I don't know if I should update when our tax form gross income drops by about 1/2 or more, due to no longer converting, though.

To me our actual "income" would really be much higher. I would not consider Roth conversions to be income, it's just moving assets from one account to another. But more than offsetting that would be the dividends and interest paid in our IRA accounts, which is non-taxable income.
by jeffyscott
Mon Mar 04, 2024 7:24 am
Forum: Personal Finance (Not Investing)
Topic: Free Online Tax Software - If it's free, you are the product.
Replies: 37
Views: 4319

Re: Free Online Tax Software - If it's free, you are the product.

It would be informative to hear from people in other counties with simpler systems to tell us how deductions are handled. Maybe many don't countries don't have 'deductions.' The U.S. tax system is extremely complex. Many don't require their citizens to fill out forms to tell the tax agency what they already know. As of May 2020 36 countries, including Germany, Japan, and the United Kingdom, permit return-free filing for some taxpayers. https://www.taxpolicycenter.org/briefing-book/what-other-countries-use-return-free-filing Only about 11.5% of US tax filers itemize deductions. There will not be a single item on my Federal Tax return that the IRS doesn't already know (or could easily know, with some minor changes to reporting requirements f...
by jeffyscott
Sun Mar 03, 2024 4:48 pm
Forum: Personal Finance (Not Investing)
Topic: If I own a house for 30 years and I replace the roof twice, do both replacements count as capital improvements?
Replies: 80
Views: 9862

Re: If I own a house for 30 years and I replace the roof twice, do both replacements count as capital improvements?

Swee'pea wrote: Sun Mar 03, 2024 4:27 pm Thank you for asking this question. I assigned myself the task of updating our cost basis in the house we've lived in for nearly four decades. We have a good record of expenditures but need to sort through the data. I got as far looking up the IRS guidance but then set it aside. This is my reminder to complete this chore.
I guess I'm going to have to do the same, just in case it's needed, now that I know that maintaining our house is often considered improvements.

The distinctions seem pretty arbitrary. Who knew that exterior painting, fixing leaks, holes, broken windows, etc. don't extend the useful life of a house. :mrgreen:
by jeffyscott
Sun Mar 03, 2024 4:31 pm
Forum: Investing - Theory, News & General
Topic: "Bonds vs Bond Funds" Wiki
Replies: 4
Views: 818

Re: "Bonds vs Bond Funds" Wiki

LISD wrote: Sat Mar 02, 2024 2:32 pm
“The duration is the length of time that an investor needs to hold the fund for the increased yields to compensate for the decrease in NAV.”

(if this last statement is true, does a 5-year duration fund need to be held for 5 years, or 5-years after the rate increase?)
To the extent it's true, it would be 5 years after the rate increase. It's a model and an approximation. Reality is a changing yield curve, not uniform interest rate changes and a fund with bonds of many durations.

Of course, if it's not a Treasury fund, the fund may also have credit risk and/or mortgage prepayment risk that affect the returns.
by jeffyscott
Sun Mar 03, 2024 3:51 pm
Forum: Personal Finance (Not Investing)
Topic: If I own a house for 30 years and I replace the roof twice, do both replacements count as capital improvements?
Replies: 80
Views: 9862

Re: If I own a house for 30 years and I replace the roof twice, do both replacements count as capital improvements?

Thirty years ago I bought a house that needed a new roof so I replaced it. Now I am about to sell it but it needs a new roof again. If I replace the roof before I sell can I claim the cost of both roof replacements as capital improvements to reduce my capital gains? Not an expert in these matters, but my Google-fu says only the latest roof replacement is the one that counts. "Your home's adjusted basis does not include the cost of any improvements that are replaced and are no longer part of the home – for example, if you replaced your roof twice, you would only be able to add the second roof to your cost basis." https://www.taxaudit.com/tax-audit-blog/can-i-deduct-a-new-roof-on-my-taxes I'm certainly no expert either, but (like c...
by jeffyscott
Sun Mar 03, 2024 11:03 am
Forum: Personal Finance (Not Investing)
Topic: Free Online Tax Software - If it's free, you are the product.
Replies: 37
Views: 4319

Re: Free Online Tax Software - If it's free, you are the product.

If you use the internet and/or a smart phone for anything, I doubt you'll avoid being somebody's "product". Even my TV is tracking me.

I've never really been sure why I am supposed to care about the use of "my data". But, in any case, it's unavoidable or at least too much trouble to avoid.

I've used free online tax filing for about as long as it's existed, I think I used OLT a few times. Once or twice I used the IRS free file site, which does pay the vendors.

The last few years it's been via cash app/credit karma as it's free for both state and federal.
by jeffyscott
Sun Mar 03, 2024 8:35 am
Forum: Investing - Theory, News & General
Topic: TIPS Principal Loss?
Replies: 12
Views: 1845

Re: TIPS Principal Loss?

Thank you toddthebod for your kind reply. So to regurgitate what you wrote, the inflation adjustment is part of the the principal when you buy the TIPS. Then if I bought a previously issued TIPS for $10,000 and $100 of the $10,000 was inflation adjustment and it was lost due to deflation, at maturity I would end up at least $100 less than what I originally paid for the TIPS? Yes you can lose nominal principal. You can see this using the examples given above: July 2024 TIPS has a price of 100.03, and an accrued principal of 1292...So the price you would pay for a bond with $1000 face value is 100.09375% of 1292, or 100.09375 /100*1292 = $1293.21 (plus some accrued interest which will be small). The accrued principal is above the face value ...
by jeffyscott
Sat Mar 02, 2024 3:39 pm
Forum: Investing - Theory, News & General
Topic: Building a TIPS ladder for IRA RMDs
Replies: 22
Views: 2926

Re: Building a TIPS ladder for IRA RMDs

So I figure when I'm done with the first pass, if TIPS yields still are attractive relative to other alternatives for "safe" assets (keeping in mind that nothing is safer than TIPS with a maturity or duration matching the investment horizon), I can use the RMD ladder as a guide to continuing to roll the shorter maturities into longer maturities. I didn't know your IRA was exclusively TIPS. If mine were, I do think that I'd want to have them maturing to meet RMDs (or migrate enough to a TIPS fund to meet them), as I'd worry that moving individual TIPS in-kind might complicate taxes. But not sure if that is that your reason why or if there some other reason? You could meet RMDs by moving TIPS in-kind to taxable. Besides possibly co...
by jeffyscott
Sat Mar 02, 2024 12:07 pm
Forum: Investing - Theory, News & General
Topic: Building a TIPS ladder for IRA RMDs
Replies: 22
Views: 2926

Re: Building a TIPS ladder for IRA RMDs

I'm not seeing the need to increase your TIPS ladder rung size in order to match expected RMDs. You apparently do not need cash beyond the extent of your existing ladder (except maybe for additional income taxes), so the additional withdrawal to get up to the RMD amount could be any asset, either in-kind or sold and withdrawn as cash. That asset should be chosen to match your investing goals. Maybe TIPS are a match for that, maybe not. I would suspect that anyone over-funded might hold stocks for legacy, for instance. Good insight. I think I addressed this in my reply to MtnBiker. I'm not seeing where this was addressed, not sure what I'm missing. I expect that we won't need our RMDs for spending, so don't see any point in trying to match ...
by jeffyscott
Sat Mar 02, 2024 10:31 am
Forum: Investing - Theory, News & General
Topic: Still trying to understand TIPS
Replies: 42
Views: 4672

Re: Still trying to understand TIPS

... Right. It just seems that there are so many posts by people (who are either building ladders, or are doing the advising or both) who seem to believe that TIPS will ultimately “protect “ them from all inflation. Hmm, maybe it's the same people who think their inflation-indexed Social Security benefits will also protect them from all inflation? :) I imagine people with Social Security benefits are figuring out how to deal with a mismatch between the "official" inflation and personal inflation, and that the TIPS ladder people are, too. Hi Sycamore, Well, there have been a plethora of TIPS discussions around here for a long time and the overwhelming premise seems to be that TIPS will make one whole with inflation at maturity. May...
by jeffyscott
Thu Feb 29, 2024 12:05 pm
Forum: Personal Finance (Not Investing)
Topic: Medicare: 64 Year Old Eyeing 2025 Medicare
Replies: 168
Views: 11419

Re: Medicare: 64 Year Old Eyeing 2025 Medicare

^My comment has been taken out of context. It was a response to someone else's post that said:

Choose wisely. You have to watch out for supplement companies that play tricks to start folks on low premiums but stick it to their older customers who may be locked in by underwriting. They do this by closing the book on a block of policies, then as folks in that book age and need more care, the company can justify high premiums to the state regulators.
by jeffyscott
Thu Feb 29, 2024 8:15 am
Forum: Investing - Theory, News & General
Topic: Still trying to understand TIPS
Replies: 42
Views: 4672

Re: Still trying to understand TIPS

It's not a controversy because nobody other than you has multiple meanings of "return." So there's no confusion around the use of the term "return", yet this thread began with a poster listing the YTM of their bond purchase, yet asking what their return will be. Okay then. And the series of posts that started this were: Valuethinker: Assuming your coupons could be reinvested at exactly the same yield, then your real return to maturity would be 2.033%. KM91: The reinvestment rate on the coupons won't be relevant. This bond will earn a real rate of return of 2.033% independent of what is done with the coupons Me: It depends on what's meant by "return". The real yield (YTM) will be 2.033%. (with Valuethinker bein...
by jeffyscott
Thu Feb 29, 2024 6:53 am
Forum: Investing - Theory, News & General
Topic: Still trying to understand TIPS
Replies: 42
Views: 4672

Re: Still trying to understand TIPS

^ Yes, but I was talking about the total return on the money, not the yield of the bond. In my example of the $10K par bond, the total return on that $10K over the 5 years is partly dependent on the returns on reinvested coupons.

So going back to the start of this controversy, it's total annualized return on $X over the term of the bond vs. the return (aka yield) of the bond. Two different meanings for "return".
by jeffyscott
Wed Feb 28, 2024 8:56 pm
Forum: Investing - Theory, News & General
Topic: Still trying to understand TIPS
Replies: 42
Views: 4672

Re: Still trying to understand TIPS

Assuming your coupons could be reinvested at exactly the same yield, then your real return to maturity would be 2.033%. The reinvestment rate on the coupons won't be relevant. This bond will earn a real rate of return of 2.033% independent of what is done with the coupons It depends on what's meant by "return". The real yield (YTM) will be 2.033%. The real total return through April 15, 2028 on all the money used to buy the bond will depend on the returns earned on the money paid out as coupons from the time they are paid through April 15, 2028. That makes no sense to me. If you get a stock dividend and put it in your savings account, do you count that future annual interest as part of your stock return? Of course not. If you use...
by jeffyscott
Wed Feb 28, 2024 4:48 pm
Forum: Personal Finance (Not Investing)
Topic: Medicare: 64 Year Old Eyeing 2025 Medicare
Replies: 168
Views: 11419

Re: Medicare: 64 Year Old Eyeing 2025 Medicare

veggivet wrote: Wed Feb 28, 2024 4:42 pm So what would the OOP max be for someone who just has Medicare Parts A and B?
$∞

There isn't one.
by jeffyscott
Wed Feb 28, 2024 3:02 pm
Forum: Personal Finance (Not Investing)
Topic: Medicare: 64 Year Old Eyeing 2025 Medicare
Replies: 168
Views: 11419

Re: Medicare: 64 Year Old Eyeing 2025 Medicare

LilyFleur wrote: Wed Feb 28, 2024 2:19 pm Does "original Medicare" refer to Medicare with a Medigap Supplement, or does "original Medicare" refer to Medicare which covers 80% with no cap for the yearly out of pocket costs?
It's the latter (just in case that's not already clear from the prior replies):
Original Medicare includes Medicare Part A (Hospital Insurance) and Medicare Part B (Medical Insurance).
...and you usually pay 20% of the cost of the Medicare-approved service...
https://www.medicare.gov/what-medicare- ... s-medicare
by jeffyscott
Wed Feb 28, 2024 2:43 pm
Forum: Investing - Theory, News & General
Topic: Still trying to understand TIPS
Replies: 42
Views: 4672

Re: Still trying to understand TIPS

km91 wrote: Wed Feb 28, 2024 1:51 pm
Valuethinker wrote: Wed Feb 28, 2024 12:37 pm Assuming your coupons could be reinvested at exactly the same yield, then your real return to maturity would be 2.033%.
The reinvestment rate on the coupons won't be relevant. This bond will earn a real rate of return of 2.033% independent of what is done with the coupons
It depends on what's meant by "return". The real yield (YTM) will be 2.033%.

The real total return through April 15, 2028 on all the money used to buy the bond will depend on the returns earned on the money paid out as coupons from the time they are paid through April 15, 2028.
by jeffyscott
Wed Feb 28, 2024 1:47 pm
Forum: Investing - Theory, News & General
Topic: Confused about ETFS vs mutual funds vs index funds
Replies: 6
Views: 1930

Re: Confused about ETFS vs mutual funds vs index funds

greenhornInvestor wrote: Wed Feb 28, 2024 1:21 pm I'm just trying to figure out which ETF would be suitable/equivalent choice for hands off investing so that I can get similar performance to SWPPX after I convert my account.
You can Google "SP 500 ETF" and find that your preferred substitute will likely be one of these:

iShares Core S&P 500 ETF (IVV)

Vanguard 500 Index Fund (VOO)

SPDR Portfolio S&P 500 ETF (SPLG)
by jeffyscott
Wed Feb 28, 2024 1:34 pm
Forum: Investing - Theory, News & General
Topic: Still trying to understand TIPS
Replies: 42
Views: 4672

Re: Still trying to understand TIPS

Valuethinker wrote: Wed Feb 28, 2024 12:37 pm
jayars35 wrote: Tue Feb 27, 2024 6:05 pm Hello all,

I have read every TIPS thread on here and still do not know the answer to this question.
For the following TIPS:
Matures 4/15/2028
Coupon is 1.25%
Price is 96.916
YTM is 2.033

Would the return =2.033% above inflation or 1.25% above inflation or neither?

Thank you
As I understand TIPS quotes

You would need to multiply Coupon & Price each, by the ratio (Inflation index now/ Inflation index at issue).
Yes, in that the coupon rate remains 1.25%, but it's 1.25% of the inflation adjusted principal.

For this one the principal value is now about $1022, so if today were April 15 it'd pay $6.39 rather than $6.25.
by jeffyscott
Wed Feb 28, 2024 12:22 pm
Forum: Investing - Theory, News & General
Topic: Trading Treasuries (nominal and TIPS)
Replies: 4107
Views: 455347

Re: Trading Treasuries (nominal and TIPS)

Can you elaborate if you pay a good price or not. Your criteria seems to be how close to schwab since you indicate schwab prices are the best, but how would one know if they overpaid? You can look at the spread for between prices for large an small quantities. You could compare your price to WSJ quotes, but any difference could be more about the time you happen to order vs. the time they get their quotes. Yesterday they have 97-12/32 or 97.375 for the April 2025. The bigger surprise was how much I end up paying, not for the say the transaction cost but the overall cost from the inflation and accrued interest. I might have to think of not getting about 40 since each rung might cost an extra $6K than expected. It can be a lot bigger differen...