Search found 29 matches

by jontherevelator
Wed Jan 06, 2016 4:53 pm
Forum: Personal Finance (Not Investing)
Topic: [Fidelity drops AmEx, Bank of America credit cards]
Replies: 289
Views: 64819

Re: [Fidelity drops AmEx, Bank of America credit cards]

Leif wrote:I also have the FIA Signature Visa and AmEx cards. I'm I correct in saying they told you the two cards will be consolidated under a new single Visa Signature card automatically with both rewards combined? Or will the generate two Elan Visa Signature cards to replace the FIA Visa and AmEx cards?
I don't have the American Express card. I didn't ask your question. I only know that I will receive a replacement for my current Visa card, and that replacement will have improved rewards rates. You should call and ask them your question!
by jontherevelator
Tue Jan 05, 2016 2:13 pm
Forum: Personal Finance (Not Investing)
Topic: [Fidelity drops AmEx, Bank of America credit cards]
Replies: 289
Views: 64819

Re: [Fidelity drops AmEx, Bank of America credit cards]

I have the current Fidelity Visa Signature card, which provides 1.5% cash back to a Fidelity account. I wanted to find out 1) if my 1.5% rewards would change to 2%, and 2) when that would happen.

I just called the number listed on the new Fidelity card advertisement page at Fidelity's website. I was unsure if the number I was calling connected me with FIA or with Elan, and the representative confirmed she worked for Elan. She answered both of my questions. The cards (and leftover rewards) will automatically be converted in July 2016, and the replacement cards will carry the 2% rewards level.

I'm glad this will be automatic for me, save the work of changing all existing uses of the soon-to-be old credit card number.
by jontherevelator
Sat Jan 02, 2016 2:42 pm
Forum: Investing - Theory, News & General
Topic: Lump Sum vs Dollar Cost Averaging
Replies: 9
Views: 1615

Re: Lump Sum vs Dollar Cost Averaging

I prefer this Bogleheads thread on DCA vs. Lump Sum investing. Personally, I see Morik's series of arguments in this area as the most convincing.
by jontherevelator
Mon Dec 28, 2015 12:13 pm
Forum: Personal Investments
Topic: Minimizing taxes in a required fund exchange
Replies: 12
Views: 1330

Re: Minimizing taxes in a required fund exchange

Makaveli - it seems a nice discussion related to your question about my comment is evolving in another thread. Here is the link.

Larry Swedroe (a member here) has summarized a paper and that paper generated the linked thread, which lead to this post by Larry himself that astutely recognizes that not holding the entire market or index may have little effect on how well an index fund tracks the more diverse version, e.g. an S&P 500 index may well track the total market index.

The thread: viewtopic.php?f=10&t=180512

The post from Larry: viewtopic.php?f=10&t=180512&newpost=2734760#p2734710
by jontherevelator
Tue Dec 15, 2015 10:50 pm
Forum: Personal Investments
Topic: Minimizing taxes in a required fund exchange
Replies: 12
Views: 1330

Re: Minimizing taxes in a required fund exchange

I feel obligated to respond to you, Makaveli, since I started the thread and made the comment. Sadly, I don't know enough theory behind why diversification matters. I just know that everything I read says it does. There are many types of diversification, some of which are obvious: asset class diversification (e.g. stocks, bonds), tax diversification (pre- and post-tax accounts). Others are a little more subtle (but still somewhat obvious in argument), like diversification across different types of stocks (which I'll call "market diversification," but I'm sure I have the wrong term for this). When I made that comment you quoted, I wanted to reinforce (for me, mostly) the thought that if it makes sense to hold the total market, then...
by jontherevelator
Tue Dec 15, 2015 2:13 pm
Forum: Personal Investments
Topic: Minimizing taxes in a required fund exchange
Replies: 12
Views: 1330

Re: Minimizing taxes in a required fund exchange

It looks like using ITOT as an intermediary would allow for skipping the dividends. Although, I see in the fine print at Fidelity that short-term trading fees may be assessed if Fidelity ETFs or iShares ETFs are held less than 30 days. I didn't see specific mention of how much that fee is, however. I think I will stick with the simple exchange from FSEVX to FSTVX prior to the ex-dividend date (for both) on 12/18. This will reduce the tax effects. I'm not sure I want to start playing the game of trying to do three-way exchanges to skip some distributions. Besides, I would have just ignored all of the distribution activity had my workplace account not informed me they were changing my funds. I can settle for an improvement instead of complete...
by jontherevelator
Tue Dec 15, 2015 11:20 am
Forum: Personal Investments
Topic: Minimizing taxes in a required fund exchange
Replies: 12
Views: 1330

Re: Minimizing taxes in a required fund exchange

If that's not true, or there is some other flaw in my thinking, I'm open to another suggestion. Please chart the performance of VV and FSTVX at morningstar.com. Sure, they follow different indexes, but if the indexes track each other tightly, then what's the difference? With that logic, the existence of domestic total market indices vs. domestic large cap indices (or whatever in-between state VV happens to be) could be challenged. Why even bother offering the different levels of market representation if it doesn't matter because they track each other so tightly? I believe that market representation matters, and so my IPS outlines the need to couple (a) large cap fund(s) with (an) extended market fund(s) or instead hold (a) total market fun...
by jontherevelator
Tue Dec 15, 2015 10:57 am
Forum: Personal Investments
Topic: Minimizing taxes in a required fund exchange
Replies: 12
Views: 1330

Re: Minimizing taxes in a required fund exchange

Touché. I am not challenging the possibility of owning Vanguard funds at Fidelity while still avoiding fees. VV is the Vanguard Large Cap ETF, is it not? I see this in the fund description on Google Finance (emphasis mine): The Fund employs a passive management investment approach designed to track the performance of the MSCI US Prime Market 750 Index VTI may be more appropriate as a total market index. It's ex-dividend date is 12/21. Though, since the ex-dividend dates of my current fund are earlier, I'd still receive the distribution from VTI if I sold FSEVX before its ex-dividend date (12/18). I don't see a way of avoiding a distribution completely by using the appropriate (read total market) Vanguard fund. If that is indeed true, I'd pr...
by jontherevelator
Tue Dec 15, 2015 9:49 am
Forum: Personal Investments
Topic: Minimizing taxes in a required fund exchange
Replies: 12
Views: 1330

Re: Minimizing taxes in a required fund exchange

Thanks for the suggestion, livesoft. I saw your thread and wondered if it might be mentioned. :)

VV is inappropriate in this case because it is a large cap ETF and not a total market ETF. I was using FSEVX to complete the total market when the total market fund was not available in my workplace account. Since the total market fund is now being forced upon me in my workplace account (this is a good thing), I need to eliminate my extended market fund and acquire a total market fund.

I can appreciate others' preferences for Vanguard funds, though I'd rather keep my portfolio as simple as possible rather than acquire yet another fund just to avoid some inevitable taxes. :beer
by jontherevelator
Mon Dec 14, 2015 11:53 pm
Forum: Personal Investments
Topic: Minimizing taxes in a required fund exchange
Replies: 12
Views: 1330

Minimizing taxes in a required fund exchange

I need to make a decision about when to exchange a fund I own for another fund. This exchange is happening inside my taxable brokerage account. This exchange needs to happen in order to keep my investments allocated in the manner described within my Investment Policy Statement (IPS). The exchange is required because of a non-elective exchange that is happening in my workplace 401(k) account. The workplace account is changing its fund offerings for the better, so this is a good thing. It merely affects me outside of the workplace account because I have taxable holdings that have rounded out my asset allocation since these better fund was not previously available in my workplace account. The workplace account exchange is happening on December...
by jontherevelator
Thu May 14, 2015 2:12 pm
Forum: Personal Consumer Issues
Topic: Home Internet - Cat 5e or Cat 6
Replies: 49
Views: 19231

Re: Home Internet - Cat 5e or Cat 6

I just had Cat 6A installed on three floors of our existing home. They installed 19 ports throughout and ran all of the cabling to my utility area in the basement. The total cost was $600. Cat 5E would have been $500.

If you decide to get the higher speed cabling, skip Cat 6. Instead, get Cat 6A.
by jontherevelator
Wed Apr 22, 2015 12:24 pm
Forum: Personal Finance (Not Investing)
Topic: What age did your Net Worth first equal 10,000x your Weight?
Replies: 48
Views: 6835

Re: What age did your Net Worth first equal 10,000x your Wei

This question makes me wonder what my net worth would be if I had my weight in $100 bills.
Google wrote:According to the Bureau of Engraving and Printing, all U.S. bills weigh the same: one gram.
Since there are 454 grams in a pound, that'd put me at just over $10 million. That'd make me feel differently when gaining weight. :moneybag
by jontherevelator
Sat Mar 28, 2015 3:09 pm
Forum: Personal Investments
Topic: Apply For HELOC as Emergency Funds???
Replies: 23
Views: 4074

Re: Apply For HELOC as Emergency Funds???

Not all HELOCs are the same. Some posters have suggested its a bad idea because of the fees, hidden or not. This isn't always true. My wife and I have a HELOC for this very purpose - to supplement our emergency savings. Our HELOC had no origination fees, no annual fees, no zero-balance fees. No fees whatsoever. We paid nothing and will pay nothing so long as we don't use the HELOC account. And if I want to brag a little, our rate is 1.99% fixed. :D Having options is always good. We have 18 months worth of emergency cash. We don't need or want to save more for emergencies, but having this extra option that costs literally nothing until we use it was an obvious choice for us. Admittedly, we have excellent credit and the HELOC we acquired kept...
by jontherevelator
Wed Aug 20, 2014 11:43 pm
Forum: Personal Consumer Issues
Topic: Tract Home - Things to Watch During Construction
Replies: 58
Views: 9265

Re: Tract Home - Things to Watch During Construction

LadyGeek wrote: You still need hardwire ethernet connections for router access (to change passwords, access control, firmware upgrades, etc.).
While I agree that hardwiring ethernet inside conduits is a good idea when you have the opportunity, this statement about hardwire connections being necessary to access the router for these specific tasks is not true. There are plenty of router options that allow for web-based, wireless management. This includes the ability to flash the firmware. I can even flash my router's firmware remotely over the Internet.
by jontherevelator
Tue Aug 19, 2014 2:55 pm
Forum: Investing - Theory, News & General
Topic: Explaining irrelevant "investing news" articles to relatives
Replies: 6
Views: 941

Re: Explaining irrelevant "investing news" articles to relat

Fallible wrote:I had one idea for you, which I added after I'd sent the first post and you may not have seen. It is to see if you can steer your mother toward the good financial news, the good books, blogs and articles and, in particular, those by the Bogleheads in the wiki. I wouldn't want to discourage her interest in reading and it could be an opportunity to get her on a better reading track, i.e., not just showing her what's wrong but what's right.
I like this idea. I'll pull some suggestions from the recommended reading page. Adding some positivity is probably in order, since I'm certain I more frequently say "don't follow that advice."
by jontherevelator
Tue Aug 19, 2014 1:43 pm
Forum: Investing - Theory, News & General
Topic: Explaining irrelevant "investing news" articles to relatives
Replies: 6
Views: 941

Re: Explaining irrelevant "investing news" articles to relat

Fallible wrote:Maybe the more important question is whether she is taking your advice and not acting on the "noise" - is she?
I can't be certain because I don't have any means of checking on her investments other than just asking her. I try to respect her independence by only offering my opinion when she asks or brings up the subject of investing or retirement. That said, I think she's staying put. In the past, she's always consulted me when changing jobs, and I was able to show her how Vanguard was the best option when she needed to roll over her old employer plan to an IRA a few years ago.

I'm interested to hear others' experiences that might be similar to my own.
by jontherevelator
Tue Aug 19, 2014 1:25 pm
Forum: Investing - Theory, News & General
Topic: Explaining irrelevant "investing news" articles to relatives
Replies: 6
Views: 941

Explaining irrelevant "investing news" articles to relatives

I could have titled this thread "How my mother tells me she is worried about her retirement." My mother periodically will send me links to various news articles that often highlight trading or investing topics. These articles frequently do not provide context to help the reader identify whether or not the content is applicable to the reader. The latest article that she has sent me talks about Michael Lewis's book "Flash Boys." There was a much longer Bogleheads thread on the book here . Her email says only "[Son], check out this article. See what you think about the Investor's Exchange." However, I know that this is her code for "I'm worried that I'm doing the wrong thing with my investments. What should I...
by jontherevelator
Fri Jul 25, 2014 10:55 am
Forum: Personal Finance (Not Investing)
Topic: Treasury Direct--just blowing off steam
Replies: 58
Views: 7173

Re: Treasury Direct--just blowing off steam

I feel like this web comic is completely appropriate to the OP's situation. :D

From xkcd.com: http://xkcd.com/327/
Image
by jontherevelator
Tue May 27, 2014 6:35 pm
Forum: US Chapters
Topic: Wisconsin - Madison Meetings - Master Thread
Replies: 160
Views: 80468

Re: Wisconsin - Madison Meetings - Master Thread

I'm interested. Hopefully the time works out.
by jontherevelator
Sun May 18, 2014 11:48 am
Forum: Personal Finance (Not Investing)
Topic: The Mega Backdoor Roth IRA
Replies: 549
Views: 244693

Re: The Mega Backdoor Roth IRA

madbrain wrote:The after-tax 401k contributions were already taxed originally, and the earnings attributable to those contributions were taxed too at the time of the rollover to the Roth IRA.
Maybe the early withdrawal should be subject to penalties, still. But not income taxes.
I have no personal experience with early withdrawals from a Roth IRA of conversion money - and I don't know if a rollover from an after-tax 401(k) counts as a "conversion" - but this Fairmark article describes the phase-out period of the early withdrawal penalty for Roth IRA conversion money.

http://fairmark.com/retirement/roth-acc ... onversion/
by jontherevelator
Mon Feb 03, 2014 10:29 pm
Forum: Personal Investments
Topic: Company Phantom Stock - Are We Making a Sound Decision?
Replies: 21
Views: 2467

Re: Company Phantom Stock - Are We Making a Sound Decision?

Ping Pong wrote:Right. Your taxable investments would have to grow faster than your rabbi stock just to break even because taxable investments have a tax drag (in your bracket) while the rabbi stock does not.
You have it backwards. The phantom stock (held in a Rabbi trust) is taxed at the higher, ordinary income rates. The equity index in our taxable account will be taxed at the lower, long-term capital gains rate. The phantom stock (deferred income) needs to grow faster just to keep up.
by jontherevelator
Mon Feb 03, 2014 8:28 pm
Forum: Personal Investments
Topic: Company Phantom Stock - Are We Making a Sound Decision?
Replies: 21
Views: 2467

Re: Company Phantom Stock - Are We Making a Sound Decision?

If you think about it, there is no tax drag on gains. Do some calculations. Calculate your after tax value now. Now calculate your after-tax value if the stock doubles. Isn't the after-tax value also double? Ie no tax drag. What you say is true when comparing investments taxed the same way. However, this was not the comparison I was making. I was comparing the growth of money inside the phantom stock plan with growth of the money invested in a taxable account. The growth in the first is taxed at ordinary income rates, the second at long-term capital gains rates (assuming I held it for a year, obviously). If we take the money out of the company stock, we can invest it in our taxable account. This changes the performance needed to earn the s...
by jontherevelator
Mon Feb 03, 2014 7:28 pm
Forum: Personal Investments
Topic: Company Phantom Stock - Are We Making a Sound Decision?
Replies: 21
Views: 2467

Re: Company Phantom Stock - Are We Making a Sound Decision?

That makes sense, dbr. I'll stop thinking about this as an investment. It's simply deferred income. When you say your company hasn't been performing at the market, what are you seeing and what are you using as a comparison? Bacchus01, our company has been seeing returns more than 50% higher than the total stock market since 2010 (e.g. if TSM grew 10%, then our company grew at least 15%). It also was increasing during the 2008-2009 downturn. However, it has trailed (only barely) two of our major, public competitors. Those competitors are the benchmark I was using when I said this: 5) Over the past decade, our company's stock growth has lagged behind major competitors in our sector. Because of this, I feel we're taking uncompensated risk. I r...
by jontherevelator
Sun Feb 02, 2014 8:46 pm
Forum: Personal Investments
Topic: Company Phantom Stock - Are We Making a Sound Decision?
Replies: 21
Views: 2467

Re: Company Phantom Stock - Are We Making a Sound Decision?

Thanks nedsaid. I've learned that everyone here does what we can, and hopefully for each of us it will be "Enough." (I had entirely too many false starts with that book. I'm glad I finally tackled it last year.) Steelersfan, I don't think I have any other instruments available. Just our taxable brokerage account at Fidelity. I readily admit that I don't know everything I could, so if there is something widely available (read not through one's employer) that I can take advantage of, I'm all ears. Our employer doesn't offer the phantom stock as an option to something else. It's just part of the entire package. We will continue to cash these in as soon as they're in the money. dbr, I read through one of the papers in your link. "...
by jontherevelator
Sun Feb 02, 2014 10:03 am
Forum: Personal Investments
Topic: Company Phantom Stock - Are We Making a Sound Decision?
Replies: 21
Views: 2467

Re: Company Phantom Stock - Are We Making a Sound Decision?

Thanks for the reading material, dbr. I'm going to take some of it on the plane with me this afternoon (headed to the airport now!).

I hadn't classified this "stock" in my mind as deferred income (because I wasn't given the option to defer any of the income they offer me). It makes sense to think of it as deferred income, though. Thank you for that revelation. :D
by jontherevelator
Sun Feb 02, 2014 9:53 am
Forum: Personal Investments
Topic: Company Phantom Stock - Are We Making a Sound Decision?
Replies: 21
Views: 2467

Re: Company Phantom Stock - Are We Making a Sound Decision?

Increasing deductions or prepaying taxes is a good idea. One we haven't thought much about.

We don't itemize much, aside from state income and property taxes. Our mortgage interest is very small (thanks PenFed!), and I don't think there is any way to pay that interest before it is actually accrued.

Charitable giving is a nice idea, but we're not at the point yet where we want to give a dollar to save fifty cents. Annual donations of unneeded items do not amount to much.

We don't have children or grandchildren and neither of us ever intends to spend more money on education, so 529 plans aren't an option, either.

What other ways should we investigate on reducing taxable income for 2014?
by jontherevelator
Sun Feb 02, 2014 9:12 am
Forum: Personal Investments
Topic: Company Phantom Stock - Are We Making a Sound Decision?
Replies: 21
Views: 2467

Re: Company Phantom Stock - Are We Making a Sound Decision?

It sounds like you are getting this stock as your retirement plan. Do you have access to a 401k or similar plan at work? (My guess is not). If you do, this would be a good time to maximize your contribution. If you are within the income limits, you could do a Roth IRA contribution. If you cannot contribute to a Roth, you could do a Traditional IRA (without the deduction because you are over the income limits) and then convert it into a Roth. Before you do this, do you have any IRA's with pre-tax contributions in them? The reason for this is that if you have IRA's with pre-tax money in them, the IRS will make you pro-rate your conversion. That is you can't just pick the after-tax portion and convert that. You would have to convert a portion...
by jontherevelator
Sat Feb 01, 2014 4:25 pm
Forum: Personal Investments
Topic: Company Phantom Stock - Are We Making a Sound Decision?
Replies: 21
Views: 2467

Re: Company Phantom Stock - Are We Making a Sound Decision?

That's correct. The phantom stock gains count as ordinary income when I cash them in. These will never be long-term capital gains. I also do not have the option to purchase the stock outright as someone with true stock options does.

(This doesn't really matter, but I thought I'd mention it. The company is not publicly traded and the stock price doesn't update as frequently as one might expect.)

Edited to add the comparison to to true stock options.
by jontherevelator
Sat Feb 01, 2014 3:04 pm
Forum: Personal Investments
Topic: Company Phantom Stock - Are We Making a Sound Decision?
Replies: 21
Views: 2467

Company Phantom Stock - Are We Making a Sound Decision?

This is my first post. Hello. I didn't post this in the format suggested for portfolio analysis because I'm not asking for a portfolio analysis. I may do that in another thread in the future. :happy My wife and I are about to cash in our entire vested position in our company's phantom stock program. This phantom stock has the risks associated with being held in a Rabbi trust. We don't pay taxes when the phantom stock is granted, but we're subject to losing the sum should the company's creditors seek it during - heaven forbid - bankruptcy of our employer or some similar situation. Until now, our IPS has not goverened what we should do with regard to our employer's phantom stock. This was largely because the amount didn't register on our rada...